While there are literally dozens of valid reasons to be bearish on equities right now, there is one simple reason to be bullish that trumps them all. The case for more upside in equities over the coming weeks:
While most equity indices are at or very close to all-time highs…
Investor sentiment is anything but bullish…
Source: Ryan Detrick
Source: CNN Money Fear & Greed Index
My takeaway is that too many market participants are trying to play the market timing game, and as always, they are likely to miss out on what could be this bull market’s last big push to the upside.
We are also about to enter a seasonally bullish few weeks; seasonality turns quite positive in the last week of June and extends until the week after the July 4th holiday (weeks 26-28 below):