SFY - Sentiment Tends To Provide Insight Into Future Market Returns
In investing, no one metric tends to provide 100% certainty into the future direction of the market or individual stock or bond for that matter. Though sentiment measures do provide insight into the so-called mind of the market, or better yet, the mind of the individual or institutional investor. This is one reason I report on sentiment and fund flows from time to time during the year.
Last week, I provided an update to the weekly AAII Sentiment Survey showing bullish individual investor sentiment of 44.1% increased above its long-run average bullishness reading of 38.0%.