Nayazindagi
2022-11-06

Investors have been bearish on stocks for most of 2022, but sentiment is shifting on Wall Street.

• Recently, Bank of America said that a 'buy' signal is close to flashing its indicators for the first time in 5+ years. The bank thinks that now, the markets have already priced in a recession.

What does that mean? When Wall Street is bearish on stocks, that has historically been a positive sign for future returns. 

Contrarian: It often pays (literally) to take the opposite side of a trade when bullish or bearish sentiment among investors hits an extreme level.

Contrarian investing is the basis behind Warren Buffet's famous quote:

"Be fearful when others are greedy, and greedy when others are fearful."

Beware: There are PLENTY of  factors that go into investor sentiment. Recession, inflation, and global factors can shift the market quickly.


@TigerStars@CaptainTiger@MillionaireTiger

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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