Since its low of 666 last Friday, the S&P 500 has rallied by 10%. With the rally, there suddenly seems to have been a notable shift in sentiment among investors that all of the market's problems will be worked out.
An example of the improved investor confidence can be seen in this week's survey by the American Association of Individual Investors (AAII). In it, bearish sentiment declined from last week's record high reading down to 54.5%. Isn't it amazing how a 10% rally can improve sentiment? Whether or not the rally is due to comments from CEOs in the banking sector, improved confidence in Washington, or simply an oversold bounce is debatable, but we'll take it.
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Not sure I understand your comment. 54.5% bearish sentiment is still among the highest readings of the last 20 years.
Posted by: j'adoube | March 12, 2009 at 01:35 PM
You are right. Just noting the magnitude of the decline which was nearly 25%.
Posted by: Paul Hickey | March 12, 2009 at 02:07 PM
Fitch downgrades Berkshire Hathaway (BRK.A) to AA+ from AAA.
Posted by: John Smith | March 13, 2009 at 07:43 AM