It's hard to imagine what it is that these investors are all so bearish about.
I mean, we're in the middle of a bull market, where we know historically it pays way better own stocks than to be selling them. We know. We have the data.
And yet, accordingly to the latest AAII survey, more individual investors are bearish over the next 6 months than at any point since November of 2023.
Here's what stocks have done since then:
These are historic returns that have rarely been seen throughout stock market history. It's been practically straight up.
The S&P500 is up almost 40%, while the Nasdaq100 is up over 45%. Financials and Communications are each up over 50%.Consumer Discretionary, Industrials and Technology are also major leaders during this period.
You see, stocks don't go up or down in price based on "fundamentals". Prices move based on positioning. And when individual investors are all bullish, it's probably a good time to be selling.
More importantly, and definitely more actionable, is when individual investors are bearish. That's historically a great time to be buying very aggressively.
These are the worst investors on the planet, and they're the most bearish they've been since 2023!
If you own stocks and are looking for higher stock prices, this is music to your ears.
If you're bearish and think stocks are going to fall, well, the dumbest money on the planet certainly agrees with you.
I can't imagine what these folks are so bearish about. They likely watch too much news and got caught up in these bullshit headlines about the deepsack or something they're calling "tariffs".
As investors, we have a choice. We can follow the news cycle, which is specifically designed to distract you from what is important.
Or we can follow price, which is the only truth in this matter, and also happens to be the only thing that actually pays anyone.
It's up to you.
We're taking full advantage of all this unwarranted pessimism and we're buying stocks. It's the only responsible thing to do as an investor.
Yesterday alone we had 3 China trades double.
Of the 8 China trades we've put on since the election, 6 of them have at least doubled in value, and one of those remaining 2 is already up 50%.
