Market Minute Jan 14, 2013

A Ray of Sunshine

According to the American Association of Individual Investors AAII, bullish sentiment rose to 46.4% remaining above the historical average of 39%. This survey measures individual investors’ six month opinion of the markets, either bullish, bearish or neutral; the results are polled weekly. For perspective, during the great market recession of 2008-09, the bullish sentiment fell to 18.9% (it was 75% during the highs of 2000).

This may suggest a shifting of the economic landscape. We have seen housing price improvement, gas and energy costs moderating and employment improving; investors appear to be loosening up their pocket books. Last week alone more money poured into stock funds than at any point during 2012. What does it all mean? Am I suggesting that all is clear, the clouds are gone and it is sunny skies ahead for the near term? Of course not. No one is sure what’s going to happen next; that’s for sure. But it’s nice to have a warm ray of sunshine to brighten up the day.