market folly

Market strategist Jeff Saut's weekly commentary focuses on his awe of the stock market rally.  He writes,

"The “buying stampede” is at a legendary 70 sessions and quite frankly I have never seen anything like  this in 42 years in this business and more than 50 years of watching the markets."

Also worth pointing out is the fact that Saut met with hundreds of individual investors last week and found that most find the stock market's rally as 'artificial' and think another crash will come because of it (equity mutual fund inflows have increased this year though).

Even more intriguing, however, is the latest sentiment survey from the American Association of Individual Investors which shows a huge drop in sentiment (from 35% bullish down to 19% bullish), even while the market hits new all-time highs.  Typically, you see the opposite (investors become bullish during peaks and bearish during troughs).

Saut also opines a bit on gold after it's seen quite a drastic fall over the past few days which you can read in his embedded below commentary:




You can download a .pdf copy here.

For more from this strategist, check out his previous commentary on how we're due for a pullback.