Rally Getting Fatigued
Year-to-date 2012 is looking good and investors are maintaining their “feel good” attitude. According to the American Institute of Individual Inves-tors (AAII), investor sentiment remains bullish though we note the bull-bear spread has come down slightly since the January 12th reading. Still, it remains the highest in more than a year. This kind of one-track thinking among investors is nothing new, but that doesn’t mean they are right. After all, pretending you don’t have a problem won’t make it go away. Lest those bulls forget; we still have some serious headwinds. Trouble is, for most of January, investors have suddenly started ignoring that little problem across the Atlantic and ostensibly believing that America has outraced the possibility of slowing corporate profits among other challenges. Regardless of investor sentiment, we will look to metrics that don’t rely on emotion; global growth estimates, bond spreads, legal insider trading (corporate executives buying their company stock) and technical analysis….
