DAX-Sentiment: DAX storms pre-crisis levels

13. December 2012 by cognitrend-admin

“The bulk of the bullishness reflected in the Cognitrend Bull/Bear-Index derives from a large, mostly passive group that adopted this opinion some nine weeks ago and haven’t budged since. This group, we have long suspected, probably recognised a notable uptick in inflows to their respective equity funds and concluded that stock prices were unlikely to fall under those conditions. These institutional investors are unlikely to have overweighted their portfolios immediately, though. One must remember, these same investors had previously spent the entire third quarter clinging to a bearish opinion of unprecedented tenacity. News of an improved cash inflow in Q4 may have been sufficient for them to put this bearishness on hold, but to become immediately bullish would have been the psychological equivalent of jumping through burning hoops…”

Read more on Boerse Frankfurt’s website

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vposted on 13. December 2012 at 8:58 am

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