Flash: It Rarely Get’s More Obvious Than This 6-3-10

Several indicators are pointing to a near term recovery from the recent market correction.

For example . . .  The retail money has yanked money from equity mutual funds.  The following chart from BofA Merrill Lynch shows they fled equities at a rate never seen before except at the panic points of Oct/Nov 2008 and March 2009 – the Great Recession market low.

ScreenHunter_02 Jun. 03 09.38

Bespoke Investment Group (www.bespokeinvest.com) has pointed out that spikes in bearish investor sentiment coincide with market bottoms.

ScreenHunter_03 Jun. 03 09.38ScreenHunter_05 Jun. 03 09.39ScreenHunter_06 Jun. 03 09.39Of course the S&P 500 remains near an all time degree of undervaluation in relation with earnings growth and the 10 year Treasury rate.

ScreenHunter_07 Jun. 03 09.40

Bottom Line:             The data rarely presents a more obvious case for a rising stock market.  The prospect for a very strong employment report tomorrow could be the icing on the cake.

 Jeb B. Terry, Sr.

President

Aberdeen Investment Management, Inc.

jbtsr@aberdeeninvestment.com

Tel: 214-347-9114

Cell: 214-552-6708

Caution: It’s a risky world we live in. My opinions are based on information believed to be reliable but hey, I could be wrong.  When investing, try to use good judgment and don’t hesitate to seek professional assistance. Remember to set limits and have a plan. . . Good Luck!

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