DAX-Sentiment: Bullishness still overstates conviction

6. December 2012 by Herman Brodie

“For the vast majority of the institutional investors on the panel there has been no change in vote; we had expected none. This is because the principal factor fuelling this bullishness has never been the index price. Since the start of the quarter when overall optimism, as measured by the Cognitrend Bull/Bear-Index, reversed dramatically from stubbornly bearish to just as obstinately bullish, we have attributed the change to cash inflows to equity funds. The fund managers in the survey might not have been convinced about the persistence of these inflows, or even of its wisdom, but they were smart enough not to fight the flow…”

Read more at Boerse Frankfurt’s website

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vposted on 6. December 2012 at 4:46 am

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