Despite my unease over the obvious problems around the world, I continue to expect a rebound in stock prices. The two main reasons are: investor sentiment seems quite depressed, and the market's technical condition is oversold.
One measure of individual investor sentiment, the AAIA Survey, is now at the highest level of pessimism since August 2011. In that case, it took stock prices two more months to bottom out, but after that the S & P 500 gained 27% over the next six months.
I still think that for investors who have ample cash reserves and have a below-average allocation to equities, it is worth buying stocks on the current weakness.
Steve Lehman
LehmanInvest.blogspot.com/
S & P 500: 1356
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