The tone of investor sentiment is signaling approach of a market bottom.

The following chart from Ed Yardeni shows that extremely bearish sentiment occurs at market bottoms – such as now.  Notice that the ratio of bulls to bears broke below 1 at the market bottoms in 2002, 2008/2009, 2010 and today.  At some point the fever breaks and investors come back into the market.    Jeb Terry, Sr. Sept 21,2011

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