Tuesday, February 26, 2008

How to 'read' the market? 4 indicators

Here are some assorted examples of sentiment indicators
Fund manager surveys - Many print and electronic media organisations conduct such surveys during the beginning of every calendar year. Usually, it is observed that, in case a vast majority of the responses are on any particular side (either bullish or bearish), it is very likely that exactly the opposite will happen during the course of the next year.
In fact investment professionals (as a group, rather than as individuals) often eclipse the weather department in terms of inaccurate predictions. In the US, the Yale School of Management Stock Market Confidence Index is based on investor surveys.

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