CITI: Stock Market Sentiment Is Perilously Close To All-Out Euphoria
Citi’s Chart of the Month is an update to the firm’s proprietary “Panic/Euphoria” model.
Simply put, when investors are panicking, then it’s probably a good time to buy. If investors are euphoric, then it’s probably time to sell.
…
Here’s a historical look at Citi’s model:
Stocks Are Set for a Possible Repeat of 1987! Says Marc Faber
Stocks are up big to start 2013 but Marc Faber, Editor & Publisher of the Gloom, Boom & Doom Report, says it ends in tears.
“Either the market is going to correct more meaningfully now or we have a shallow correction and a continuously rising market until July or August,” Faber told me via phone from Thailand. If stocks don’t pullback soon, he says we risk a repeat of 1987 when stocks rallied 40% into summer only to collapse 41% in 2 months.
“In March of 2009 everything looked horrible, now nobody can find a reason why stocks could go down,” Faber claims. “We ask that you should buy stocks when everything looks horrible, you shouldn’t rush to buy them when everything looks perfect.”
The Economy Is Much Worse Than the Data Show
Euro zone seen dropping deeper into recession as Germany slips
