The “Herd Instinct�
Prime example being Global Oil E&P stocks at present, selected European banks, Russian equities (and bonds), and, of course, our favourite: gold and silver stocks.
Below is a table of sentiment measures that private investors can keep an eye on in assessing prevailing sentiment.
The points contained in here are also a big warning sign for buying index tracker funds towards the end of bull markets. That being that as equities rise and herding self feeds, the case for buying blindly diminishes and active fund management, ideally by contrarian fund managers, is probably most appropriate.
SENTIMENT MEASURES TABLE
34 | www.financial-spread-betting.com | September 2014