A little perspective
Thus far, the pullback in the S&P 500 is 7.7% (1553 top – 1433 close today). The pullback in Feb/Mar was 5.8% in the S&P. Measures of fear such as the VIX, TRIN, 10-day put/call (1.26) and 60-day put/call (1.02) all indicate investors are very, very scared. In addition, bullish sentiment by both investors and advisors is dropping quickly as bearish sentiment gains momentum. All of the contrary indicators that have signalled bottoms during this amazing 4-year strong bull run are once again flashing buy.
Six months from now, investors are going to look back on the July/August pullback (correction?) as an awesome buying opportunity.
Filed under: General
Posted on August 3rd, 2007 by Bob Brinker