More Wall of Worry

We have seen fear come back into the markets with a vengeance. We have rebuilt the so-called “wall of worry” that the market seems to need to climb. As a quick indicator of that, the bullish percentage in the American Association of Individual Investors weekly sentiment poll has fallen to 24% recently from 43% in early April. The bears have grown to 48% from 29% in the same period. Typically, when twice as many people are bearish as bullish the market tends to rise. Just as when roughly twice as many people are bullish as bearish, it tends to fall. Read more