Advisors Sentiment survey is a field of
market sentiment
Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including p ...
. Advisors Sentiment was devised by Abe Cohen of Chartcraft in 1963 and is still operated by Chartcraft, now under their brand name of Investors Intelligence. The survey surveys independent investment newsletters (those not affiliated with brokerage houses or mutual funds). Findings are reported weekly as the percentage of advisors that are bullish, bearish and those that expect a correction.
The survey is anecdotal evidence as to extremes in investor confidence, conditions that are often seen at major market turning points.
The survey is often quoted in the media. In August 2009, articles in the ''
Los Angeles Times
The ''Los Angeles Times'' (abbreviated as ''LA Times'') is a daily newspaper that started publishing in Los Angeles in 1881. Based in the LA-adjacent suburb of El Segundo since 2018, it is the sixth-largest newspaper by circulation in the Un ...
'' and ''
The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' reported that advisors were as bearish as they were in October 2007, a warning sign that markets were getting ahead of themselves.
Bull–Bear Spread
The Investors Intelligence Sentiment Survey reports the attitudes of U.S. advisors. A large difference between the percentage bullish vs. bearish indicates more risk.
* The 30% difference is increased risk.
* At 40% difference consider defensive measures.
On January 16, 2018, Peter Boockvar said that the Investors Intelligence had the highest bull bear spread since 1986. Boockvar said that there was an extraordinary level of overboughtness.
Yardeni Research, Inc. posts data about the Investors Intelligence Sentiment Survey including the Percentage Bulls & Bears.
See also
*
Point and figure chart
Point and figure (P&F) is a charting technique used in technical analysis. Point and figure charting does not plot price against time as time-based charts do. Instead it plots price against changes in direction by plotting a column of Xs as the p ...
*
Market timing
Market timing is the strategy of making buying or selling decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from ...
References
{{Reflist
External links
Advisors Sentiment Report by Investors Intelligence
Investment