Open up any financial media outlet and you will see it full of bearish articles or forecasts. For instance, Investors haven’t hated the US stock market this much since 2007
This marked the sixth-straight month that fund managers were net underweight the US stock market, the longest stretch since 2007 in the run-up to the financial crisis.
Yet, most indices are sitting one quick rally away from setting new all time highs. What gives or how will this “net bearish sentiment” play out?
I believe there are two distinct possibilities.
- A fairly substantial stock market rally. To dispel today’s bearish sentiment.
- A substantial decline and/or an outright crash. To allow the market to catch up to today’s sentiment and other structural/technical divergences we are witnessing.
If you would like to find out which scenario will play out, please Click Here.