Stock market optimism from pros reaches highest level in nearly 32 years

“Stock market optimism among professional investors just keeps on surging,” Jeff Cox reports for CNBC. “Bullishness, or the belief that the market is heading higher, is now at 66.7 percent in the latest Investors Intelligence survey, a widely followed gauge of sentiment among investment newsletter authors. ”

“That’s the highest level since early April 1986,” Cox reports, “a potential warning sign that the rush into equities is getting overdone.”

“In just over two weeks of trading, investors already have poured $14.8 billion into stock-based exchange-traded funds, another indicator of money surging in,” Cox reports. “The Investors Intelligence survey also showed that skepticism is nearly gone as the S&P 500 has posted a 3.85 percent gain in 2018. Bearishness fell over the past week to 12.7 percent, also the lowest reading since April 1986. The level was at 15.2 percent just two weeks ago and was above 20 percent the week of Sept. 12.”

Read more in the full article here.

MacDailyNews Take: Overall optimism, coupled with U.S. tax cuts and Apple’s forthcoming earning reports could catapult the company nearer to the elusive trillion-dollar valuation.

SEE ALSO:
Apple expected to issue less debt in 2018 now that President Trump has signed the Tax Cuts and Jobs Act – January 16, 2018
U.S Treasury: 90% of U.S. workers likely to see more money in take-home pay next month – January 13, 2018
U.S. sees strongest holiday sales since 2010 – January 12, 2018
Dow, S&P 500 and Nasdaq rocket to new all-time records – January 11, 2018
S&P 500 and Nasdaq rise to records on first trading day of 2018 – January 2, 2018
U.S. employment jumps more than expected in November, boosts U.S. stocks – December 8, 2017
U.S. third-quarter GDP revised to three-year high of 3.3% – November 29, 2017
Goldman Sachs sees U.S. unemployment rate hitting lowest level since the late-1960s – November 20, 2017
American consumer confidence soars to highest level since December 2000 – October 31, 2017
U.S. jobless claims plunge to lowest level since 1973 – October 19, 2017
U.S. economy picks up steam; second-quarter GDP up 3.0% reflecting robust consumer spending and strong business investment – August 30, 2017
U.S. consumer confidence shows Americans upbeat on jobs, economy – July 25, 2017

13 Comments

  1. here’s the money quote

    “That’s the highest level since early April 1986,” Cox reports, “a potential warning sign that the rush into equities is getting overdone.”

    so be careful what you wish for…. overheat the economy and and watch inflation grow.

    especially if the rosy predictions of a booming economic growth rate don’t pan out as imagined and deficits grow the debt.

    they don’t call economics the dismal science for nothing.

  2. “In just over two weeks of trading, investors already have poured $14.8 billion into stock-based exchange-traded funds, another indicator of money surging in,”

    Another story with nothing to do about tech. The market began going up the day after Trump was elected and has never stopped. The market went up becasue they knew the GOP now controlled congress and with Trump as president the tax bill had a very good chance of passing – and it did and signed in 2017. The rich and corporation will receive a massive tax cut.

    Today about 21 GOP congressmen have announced they’re not running or resigning in 2018. The stock market does not reflect main street. It is the opposite of main street which is closing stores, restaurants, low wages, high rents and low home ownership.

    1. hate-the-richers, share-the-wealthers, trickle-down-flat earthers, read the other article at CNBC that states Apple plans to contribute $350 billion to the U.S. economy over the next five years. In another CNBC article, it’s reported that APPL will create 20,000 new jobs in the next five years as a result.
      For those inclined to conflate, confuse and combine statements because of their hatred of the Cheeto, Drumpf, or other juvenile adjectives used for the prez on MDN, whom I think acts like a juvi at times, I’m talking the “mechanics” of economics alone. Nor am not attributing these investment/job #’s to Don….so control yourself and focus, please.

      Is it reasonable to assume the tax cuts and repatriation is resulting in Apple’s move? Yes.
      Does this give credence to the position that the rich don’t just sit on their $$? Yes.
      Does this demonstrate that when the rich/wealthy have a pile of money or experience an infusion of $$ that a investment results and it typically is followed by job creation? Yes.
      Are the rich/wealthy largely responsible for the material level of job creation…20K being defined as a material level? Yes.
      Does mean the rich will likely get richer as a result of the cuts/infusion? Yes. Is this bad? Yes, to those that expect a direct infusion of this $$ into their back pockets.
      Does this give the “not-wealthy” the opportunity for success? Yes…esp if they live within/below their means.

      BJ, Jimmy, Roscoe and others that philosophically posit that the f’g rich need to give more…what more do you expect, need, want? Do these recent announcemnts support and epitomise the unfairness you proclaim? I thought the real drivers of the economy were the consumers? The chicken or the egg argument comes to light again…did you ever get a job from the non-wealthy, or from a poor man? We know the answer. Life is very unfair, I guess, but this news is good…even to those that have this “want” mindset.

  3. Everyone knows the markets are manipulated . This isn’t real .We’re way overdue for a major crash . And the dollar is worth nothing these days .The Petrodollar is going away, its Being replace already by the Petroyuan .when the market goes this time its going to be scary

    1. Go sit on the sidelines and miss out. Of coarse the market will have it’s downs but it has always gone up over time. All those eggs that got broken back in 08 aren’t only fixed now but much larger, no matter how obama tried to keep them broken.

        1. Is that suppose to be an insult? I sound like Trump?

          Diversified? Into what? Since the day after the election the only place to have your money has been the stock market. Even when there is a down turn I’ll keep buying stock. Why? Because long term that’s the best place to have your money.

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