ACTV - No Matter What The Fed Does The Lack Of Bears Is Worrisome
2024-03-28 03:46:36 ET
Summary
- The current investor fixation on the FED and interest rates overlooks the fact that almost everyone is already bullish, leaving few buyers to drive stock prices higher.
- Two indicators, the low short position of money managers in S&P 500 futures and the overwhelmingly bullish sentiment in the Investor Intelligence survey, suggest that there are "too many" bulls in the market.
- This indicates that investors should be cautious and suggests that the market may be lower a year from now, even if the Federal Reserve lowers rates.
The current investor fixation on when the Federal Reserve will drop interest rates and by how much overlooks an important fact – almost everyone is already bullish. So, even if they do drop rates who’s left to buy to drive prices higher?...
No Matter What The Fed Does, The Lack Of Bears Is Worrisome