QQQA - To Benefit Long-Term Investors: Invert Punditry - Weekly Blog # 685

• One indication of the market power of pundit soundbites is the weekly sample survey conducted by AAII. They ask their weekly sample if they have a bullish, bearish, or neutral market performance outlook over the next six months, and most of the time, their views represent those of the loudest pundits.
• Professional market analysts consider the trend of their predictions a contrary indicator.
• Only half the number are bearish vs. bullish in this week’s reading, which probably tracks the word count published by pundits. This extreme ratio, or higher, is often found at significant turning points.
• Two of the largest mutual fund management companies serving both individual and institutional investors, Capital Group (American Funds) and T. Rowe Price, recently sent reports to investors and distributors urging them to hold through the coming market decline.

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