INVESTORS ARE IN RISK-OFF MOOD

Yes, pretty much. Against the yesterday rally the investors are still super concerned and sceptical about any rebound or any rally in stock markets. On Monday the SP500 erased the declines of the previous four sessions. The typical retail investor in US hold the big money in bonds or in the bank accounts not in stocks and investment funds.

The two relevant sentiment index is at yearly low levels. Both are turned extremely bearish in the last two weeks.

AAII Sentiment Index:

• http://www.aaii.com/SentimentSurvey
• The bears are in the biggest numbers since last 2013 August.

CNN Money Fear & Greed Index:

• (measured from 0-100) dropped from 95 to 5 in just two weeks. 
• http://money.cnn.com/data/fear-and-greed/
• A month ago the vast majority was greedy, but curently the rate is at 8 which is in the extreme fear territory.

There are many geopolitical reasons why the sentiment is so negative, but the strange thing that technically there is not any reason for that kind of scepticism. The US indices haven’t suffered big correction last week dropped only around 4%, which is not the end of the world. But the investors still believe well when they burned out in 2008 and 2009 and they don’t want to happen that again.

People are all in all are so desperate and they untrust in Mr. Market. They don’t really trust neither in QE tricks and FED’s monetary policy. They don’t believe in the Mainstreet macroeconomic good numbers and data.

But maybe they are all wrong and the market will go new highs. Who knows? But it is worth to pay attention to these remarkable sentiment facts.

The BFM Assets Team.