Sentiment Nearing Record Bullishness

Tyler Durden's picture

While we are bombarded with talking heads telling us that there is money-on-the-sidelines and everyone is so bearish with the market climbing a wall of worry, the reality - as we see across multiple asset classes - is that investors are overweight risk assets (e.g. credit investors overweight IG and HY and mutual fund cash at record lows), near-extreme levels of bullishness (AAII and Put-Call Ratios), near extreme levels of non-bearishness (AAII), and yet credit investors believe markets are overvalued (though still buying).

 

In Equities, the AAII Bull/Bear Ratio is at +1 sigma from historical norm and near its high 'turning point' levels...

 

and at the same time, credit investors are net overweight risk assets and see it as the most overvalued in years...

 

and the advance-decline line in corporate credit (high-yield especially) is at extreme levels once again...

 

So apart from all that - yeah, everyone is bearish!!