The Negativity Bubble

Thursday, August 16, 2007 | 10:26 AM

I keep hearing people say that there is "too much negativity out there."

Investors should understand that the way this is typically presented, it is merely an opinion. ("I think, I feel, I believe").

However, I prefer quantitative metrics -- hard numbers -- to feelings/opinions. Dougie Kass sends along these two data points:

• The cash positions in mutual funds stand at 3.8%, slightly below the 3.9% low established in 1972.

• Margin debt as a percentage of the S&P market cap has climbed to 2.4%, an all-time high. The previous peak? Early 2000, at the height of the Internet bubble.

 

Data always trumps anecdotal evidence.

~~~

What's in your wallet sentiment model?

 

Thursday, August 16, 2007 | 10:26 AM | Permalink | Comments (65) | TrackBack (2)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00e54edf3cb88834

Listed below are links to weblogs that reference The Negativity Bubble:

» The Rumor BubbleBlow-ups, Meltdowns, Emergency Announcements, Warnings: Wall Street Rumor Drunk From Sipping On The Product of The Grapevine from DealBreaker.com
Today might not only be one of the most violently volatile days on the market. It’s also one of the most rumor swept. We’re hearing more rumors with more names attached than anyone could possibly check or even keep up... [Read More]

Tracked on Aug 16, 2007 3:13:31 PM

» Margin Debt Mutual Fund Cash Levels Dont Matter from Trader's Narrative
Last Thursday, Barry Ritholtz wrote in The Big Picture about two data points sent in by Doug Kass: • The cash positions in mutual funds stand at 3.8%, slightly below the 3.9% low established in 1972. • Margin debt as a percentage of the S... [Read More]

Tracked on Aug 23, 2007 11:00:18 PM

Comments

and SPY making generational double top. mama.

Posted by: scorpio | Aug 16, 2007 10:28:36 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner