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Entries for May 2012

Individual Investor Bullish Sentiment Remains Low

Posted by David Templeton on Thursday, May 31, 2012 in Wealth Management | Comments (0)
In today's sentiment survey released by the American Association of Individual Investors, bullish investor sentiment declined to 28.02% versus last week's reading of 30.47%. The bull/bear spread was also more negative at -14% versus -8% in the prior week. Additionally, the 8-period moving average of bullish sentiment is at its lowest level, 28.7%, since March of 2009 when this average was reported at 27.5%.From The Blog of HORAN Capital AdvisorsThe AAII sentiment survey is a contrarian indicator...  Read more...

Jason Trennert: The Bill Has Come Due

Posted by David Templeton on Monday, May 28, 2012 in Wealth Management | Comments (3)
Jason Trennert is interviewed by Consuelo Mack on this week's WealthTrack. Jason discusses where investors should consider allocating their investments given the uncertainty surrounding the upcoming elections and the so called $537 billion "fiscal cliff" looming large at the end of the year.The fiscal cliff is in reference to the expiration of the so-called Bush tax cuts, expiration of the payroll tax cut, the implementation of automatic spending cuts and the initiation of additional taxes to su...  Read more...

Equity Put/Call Ratio Approaching 1.0

Posted by David Templeton on Sunday, May 20, 2012 in Wealth Management | Comments (0)
In the third week of August last year we noted the equity put/call ratio had climbed above 1.0 as noted in the post, Equity Put/Call Above 1.0 Again. As we wrote in that post,"The equity P/C ratio tends to measure the sentiment of the individual investor by dividing put volume by call volume. At the extremes, this particular measure is a contrarian one; hence, P/C ratios above 1.0 signal overly bearish sentiment from the individual investor. This indicator's average over the last 5-years is ...  Read more...
Almost everywhere we look these days, we’re seeing big numbers – the nation’s deficit and debt, total student loans outstanding, the underfunding of municipal pensions, our over-extended entitlement programs: Social Security, Medicare and Medicaid. Where it’s all going is anybody’s guess, but at the risk of overload, I’m going to share one more big number with you – one that has clear relevance to all of our futures.     A 65-year-old couple retiring this year will need $240,00...  Read more...

Significant Drop In Investor Bullish Sentiment

Posted by David Templeton on Thursday, May 10, 2012 in Wealth Management | Comments (0)
The American Association of Individual Investors reported a significant drop in bullish investor sentiment this morning. The bullish sentiment fell ten percentage points to 25.40% versus 35.40% last week. This week's reading is the lowest level for bullish sentiment since September 22nd last year when bullish sentiment was reported at 25.33%. The bull/bear spread is now -16.66% versus last week's spread of 6.93%.From The Blog of HORAN Capital Advisors  Read more...
This post is a little bit off the path of a direct investment market or economic topic that I generally write. However, the observations do have implications for the employment market and how future college graduates might improve their employment prospects.We are entering that time of year where students are celebrating their graduation from high school and college. Having recently attended Indiana University's graduation and talking with some of the graduates, it was evident that not all senio...  Read more...

Dividend Payers Outperform In April

Posted by David Templeton on Monday, May 07, 2012 in Wealth Management | Comments (0)
Standard & Poor's April performance update for the dividend payers versus non-payers in the S&P 500 Index shows the payers outperformed in April. The outperformance was almost 200 basis points or two percentage points, 1.72% versus -.12%, respectively. In spite of the strong April performance for the payers, the payers trail the non-payers on a year to date basis, 13.35% versus 16.40%, respectively. For the twelve month period, the payers have outperformed by more than 700 basis points though.Fr...  Read more...