Poll Results: Bulls are terrified

Nearly a hundred responses in so far and we’re at, I’m not joking 95% saying that the bulls are more scared right now.

Let’s summarize what this analysis means. A “bull” is someone who thinks the market is going to go up. A “bear” is somebody who thinks the market is headed lower. When the bulls are all scared, it can be a great contrarian indicator that it’s time to start buying because often times when the bulls are all scared, the weak hands have already all sold and the markets put in a near-term bottom. On the other hand, when the bears are overwhelmingly scared and the bulls are confident, it can be a great indicator that it’s time to sell some because often when the bears are all scared, the markets are near a top with little fire power left to move it higher in the near-term.

At 95%, this is one of the most extreme reads, we’ve ever had on this “Who’s more scared indicator?”, and I’ve been very successfully using this indicator with my readers for more than a decade now.

To be clear, that doesn’t mean we go all in and get levered up on the long side all of a sudden. It simply means that it’s more of a time to be buying our best long-term investments and to start scaling into more overall long exposure.

Indeed, I’m moving a little more money into my stock account today — which doesn’t mean anything other than the fact that as I’ve hinted before, since my income is rather large in relation to my overall stock portfolio exposure at this stage of my career and life, you will likely continue to see me occasionally send more money into my portfolio when the money is there and I’m starting to warm up to the pitches I’m seeing. And that’s a pretty accurate description of why I’m doing that today.