Weekend commitments have me beginning our weekly macro exercise a day early this week.
Seeing a number of pundit blurbs recently over the precipitous decline in investor sentiment, so I started this morning with scoring our own "Fear/Greed Barometer."
Sentiment is considered a contrarian indicator among strategists, and, for the most part, we agree. However, like all things/indicators, we need to put it in the context of overall general conditions.
For example, the widely followed American Association of Individual Investors (AAII) weekly sentiment survey had bearish sentiment among its members at its second highest of all time on March 13, 2008:
"...not even a world war can keep the stock market from being a bull market when conditions are bullish, or a bear market when conditions are bearish. And all a man needs to know to make money is to appraise conditions."