A contrarian indicator

The Crash Confidence Index shows the percentage of individuals and institutions who see little probability that the stock market will crash in the next six months.  A lower percentage indicates that more investors expect a crash.  We reached a low in the beginning of 2009, the bottom of the most recent crash.

From there the market rallied.  A contrarian investor, one who goes against the tide, may see this recent low in the index as a bullish sign.  The moment the everyday investor becomes the most bearish can be the moment the market turns and heads higher…or not…just something to think about.

By | 2012-01-10T19:54:57+00:00 January 10th, 2012|Categories: Economics|Tags: , |0 Comments

About the Author:

Bryan Sanford is Vice President and Investment Officer of Charter Trust Company. He joined the firm in 2009 and is based in our Concord NH office.

Mr. Sanford received his Bachelors of Science degree from the University of New Hampshire, Durham. Mr. Sanford has held the FINRA Series 7 license.

Prior to joining Charter Trust, Mr. Sanford served in the United States Marine Corps as an infantryman. He participated in Operation Iraqi Freedom, touring in Fallujah, Iraq.

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