Stocks: More Bears Than Bulls

March 6, 2022

It's happening.

Investors are bearish.

Especially American ones with a ton of Growth exposure!

Want to know what a bag holder looks like? I encourage you to take a look at your typical American portfolio with a ton of Technology stocks in it, Consumer Discretionary stocks and virtually no exposure to Commodities and Latin American equities.

Of course sentiment is bad. It should be bad!

But this bad?

More Bearish Financial Advisors than Bullish ones?

That doesn't happen very often.

But when it does happen, it's historically been a great time to be putting money to work.

And to be clear, I'm not making fun of growth investors. I think they've had a hard enough time already. I'm specifically referring to the fact that sentiment tends to follow the prices of those growth stocks.

And listen, I realize that commodities have come a long way the past couple years. And I'm also very aware that Growth stocks have already been destroyed.

These aren't new trends. over 70% of the nasdaq is down 20% or more. Almost half the stocks on the nasdaq have been cut in half. The average drawdown on the nasdaq is almost 45%.

But when we zoom out, have we even made any progress?

Not much....