Tuesday, August 21, 2012

Stock Market Decline Likely

Investor complacency has risen along with stock prices as this rally since early June matures (funny how that always seems to happen).  

Market sentiment measures now show widespread complacency, if not wild-eyed greed, among stock market participants.  The Consensus Inc. and Market Vane surveys of professional investors are at historically high levels, and the put/call ratio is relatively low.  These, along with other measures that I follow, tell me that stock prices are vulnerable to a setback in the weeks to come. 

I reiterate my advice to raise cash.

Steve Lehman

S & P 500:  1420

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