I was trained to pay attention to flows and fund data, not investor sentiment or confidence polls. I was taught to watch insider buying and selling, not to take management roadshow presentations at face value. This is Street smarts, not book-learnin’. If the extent of your knowledge about investing comes from books rather than actual practice and experience, you’re going to be slow to understand this.
I like to watch what they do, not what they say. And what they began to do was buy stocks again, according to the weekly and monthly data tracking this stuff. Look outside the tired ICI mutual fund survey and you will see this to be true, regardless of what investors may say to a poll.
Anyway, someone tried to slip the sentiment lie past me this afternoon on CNBC’s Closing Bell. You know how it goes: Everyone is so negative it just HAS to be a contrarian signal. I think there was more credence to that idea earlier this year than there is now – and I think I made that clear below, apologies to the chief investment strategist types in the multibox: