We certainly ain’t gonna solve the debate about the usefulness of sentiment surveys here today…but Erik at Market Anthropology asks an interesting question about how we’re reading them:
If the Investor Intelligence survey of the previous week found only 15.7% of advisors were bearish, and yet the majority of those advisors were still riding the strongest market sector, that just happens to be the bearish safehaven of gold and silver – isn’t it misrepresenting the underlying market sentiment?
Is being bullish on gold and silver, which to a man almost every long investor and trader is, a sign of overall bullishness in the traditional sense? Is the survey meant to record gold longs as “bulls”?
Once again, the Fed-induced, liquidity-driven rally forces us to reinterpret yet another distortion of the old rules of engagement.