BEHAVIOR: RISK ON

Bullish sentiment rose last week pretty slightly, according to AAII’s report. Individual investors are more bullish again.

This is the lowest bearish level sentiment since 16th January this year, when the SP500 hit the all-time high.

The reason is simple why they turned in risk on mood again. The market made nice rally in the last three weeks. The avarage small investor is lagging the market’s moves with one or two weeks phase. Bear in mind that flows mostly follow the market, not vice versa. So it is more contrarian indicator not an indicator about the future movements. The investors love to throw their money into that asset class which was performed well during the prior week.

The housewives came back to the market after the six weeks of correction in January and in half of February. They streamed mostly their savings into the US, EU and Japanaes equities. The risk appetite is on rise again and majority if investors are in risk on mood.

The BFM Assets Team.