A helpful reminder from JPMorgan Asset Management about sentiment and its effect on future returns…
Negative headlines create unease amongst investors and, as can be seen in the chart of the week, investors are now more bearish than at any time since last July. However, as is also shown in the chart, bearish sentiment is a good contra-indicator for the S&P 500, with solid equity market gains usually being logged in the year following very bearish sentiment.
Weekly Market Recap
JPMorgan Asset Management – January 18th 2016