Anonymous
Anonymous asked in Business & FinanceInvesting · 1 month ago

what is the logic to this: "If Everyone is bearish on the stock market, that just makes me even more bullish"?

that is what this trader that if found online keeps saying, he says that when everyone else is a bear, that means it is time to be a bull"....but WHY? how is that logical? if all the CNBC news anchors are being bearish now about the stock market, why that would make sense to be bullish on the market?

Update 2:

WHAT WOULD BE THE LOGIC TO BE VERY BULLISH AT THIS POINT? MAYBE THIS GUY IS TRYING TO GET OUT AND NOT WANTING PEOPLE TO BE BEARISH UNTIL HE CAN GET OUT COMPLETELY?

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  • Anonymous
    1 month ago
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    i am not clicking on whatever it is you posted.  But a high negative sentiment overall can be a positive for stocks. Because it represents a lot of cash on the sidelines.

    If you read rather than went to youtube you might know that.

    https://en.wikipedia.org/wiki/Market_sentiment

    Market sentiment is usually considered as a contrarian indicator: what most people expect is a good thing to bet against. Market sentiment is used because it is believed to be a good predictor of market moves, especially when it is more extreme.[2] Very bearish sentiment is usually followed by the market going up more than normal, and vice versa.[3]

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