Chart of the Day: Consumer Sentiment Hits 28 Year Lows

Tuesday, June 17, 2008 | 11:45 AM

Markets opened strong, then rolled over and went negative.

If you were a pure contrarian, you would think that sentiment readings were a good -- albeit historically early -- buying signal. The last time we were this negative was in 1980, and  we were pretty close in 1990-91.

I take that as signal to look for what can be described as a low risk, high return buying  entry point some time over the next two years.


Source: Haver Analytics, Merrill Lynch (June 13, 2008)


This does not mean there won't be moves up and down between now and then, or there won't be other buying opportunities over the next 24 months.

However, if you are looking for a 1980 type of a start of the new Bull Market, sentiment is suggesting we could see one in that time frame.


Tuesday, June 17, 2008 | 11:45 AM | Permalink | Comments (31) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



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Did you mean the 1980's bull market? If not, wasn't the take-off point in August 1982?

Posted by: lithuania | Jun 17, 2008 11:57:40 AM

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