Investors are Liars
- Joshua M Brown
- April 11th, 2013
“Watch what they do, not what they say” goes the old Sicilian proverb
Never was it more apt from an investment standpoint.
Investors are telling pollsters and friends and neighbors that they’re bearish or not confident, and yet they’re buying stocks reluctantly so as not to miss out anymore.
I never talk about sentiment surveys here because I know that they’re predictive of nothing 99% of the time. Also, people are full of shit, very poor at forecasting their own behavior in real life.
Today’s AAII survey was incredibly noteworthy. Everyone is talking about it.
Chris Kimble charts the extremely low bullish reading below:
Investors are hedging – buying stocks but outwardly pretending they don’t expect them to work out.
I love this. It’s like “There’s no way my Giants are going to win this week, but I’m putting a dime on them anyway.”
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.