• What Can You Learn From Reading Cartoons?

    by  • March 21, 2013 11:50 am • Quick Hits

    Markets peak at euphoria.  You could say we are seeing some signs of excitement, but are we at true euphoria toward stocks?  I don’t think so.

    According to data from the ICI, just 3.5% of all the outflows since ’07 have come back to US stock funds the past few months.  In other words, we have a long way to go before the retail crowd is back, if they ever truly come back.

    Also, a recent CNNMoney poll found that 55% of those polled said it was a bad idea to invest in stocks here.  Also 69% said the economy was poor or very poor.   That isn’t what you would expect to see at a major peak.

    Lastly, these two business cartoons have been making the rounds.  Both show almost an outright disgust of the bull market. Again, from a contrarian point of view, that can be very powerful from a longer-term point of view this bull market has some major legs left.

    This one was in the New York Times recently.

    Not sure where this one came from, but it has been making the rounds.

    About

    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).

    http://schaefferstradingfloor.com/

    • milton roegner

      I see that median household net worth has declined to $69,000.00 from something over $100,000.00 in 2007. Older citizens? subjects? are borrowing to make ends meet partially due to lack of interest on savings. This just doesn’t seem like a robust recovery for many would be investors.

      The best way to destroy the capitalist system is to debauch the currency. Vladimir Lenin.
      Milton Roegner