A 10-Year Overview Of Market Sentiment by Joe Duarte, M.D.
ARTICLE SYNOPSIS ...A 10-Year Overview Of Market Sentiment by Joe Duarte, M.D.
Crowd psychology plays a role in the development of market tops and bottoms. In theory, a bottom forms when the majority of investors are extremely pessimistic, and a top occurs when the investors are uniformly bullish. Here's a review of the past performance of a collection of indicators used to measure investor sentiment.
In my January 1992 STOCKS & COMMODITIES article, I described a group of seven indicators which, when combined, produced an extremely accurate forecaster for higher prices in the Standard & Poor's 500 index. Over ...