The Week Ahead: Are German Investors Right About Stocks Again? |
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December 20, 2015 |
December 2015 Bond Updates
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The stock market's bullish reaction to the FOMC rate hike did not last long as after last Wednesday's strong close the sellers again took over. A week ago I was not convinced that the market would able to recoup the prior week's losses and was looking for rally failure but not a market plunge.
As I noted in Thursday "Can Stocks Now Pass The Test?" one positive from the market's recent decline has been the drop in bullish sentiment. As I said the "AAII survey reveals that the bullish% dropped 4.6% to 23.9%. This is the lowest reading since it hit 21.1% on July 30th. This was supported by a 9.5% rise in the bearish % to 39.4%."
The additional selling on Thursday and Friday is not likely to turn more investors bullish for this Thursday's survey. German investors appear to feel different about the market as the recent survey from ZEW Economic Institute rose to 16.1 from 10.4 the previous month. The chart does suggest it has bottomed. The survey of analysts and institutional investors shows that "confidence is growing that the German economy is sufficiently robust to meet these challenges in the coming year," said ZEW president Clemens Fuest.
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View more at: http://www.forbes.com/sites/tomaspray/2015/12/19/the-week-ahead-are-german-investors-right-about-stocks-again/
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