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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: James F. Hopkins who wrote (114833)7/29/2001 10:20:29 AM
From: Perspective  Read Replies (1) of 436258
 
Saw that too. This one's actually pretty easy to understand; they even give a pretty good idea of the reason in the article. They asked investors if they thought they would meet their investment goals in the next twelve months. Well, since they were expecting 20% annual returns forever, and they now see they aren't going to get that, they are "pessimistic".

Are they still at record overweight equity ownership levels? Yep.

The only reliable sentiment numbers appear to be those by Investor's Intelligence. Even the AAII numbers are suspect. The way that they ask the questions somehow allows for total inversions of "investor sentiment" in the space of five days, which obviously means the numbers have little significance.

You want to gauge more than how the investing public "feels" on any given day; you are interested in what they are doing with their money. When individual investors finally start throwing in the towel, and insiders start to belly up to the bar, that's when I'll become interested in equities again.

BC
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