From Brian Hunt in Growth Stock Wire:
It's time for traders to take caution... the "dirty secret of the investment advisory business" is flashing a warning sign.
This dirty secret helped traders make big, low-risk gains by going long stocks in June. And it's a timeless piece of wisdom that will always help lead you to great trading opportunities. The "dirty secret" is simple...
Most of the folks writing investment newsletters aren't particularly good at their jobs.
And rather than listening to the average investment-newsletter "guru," you're better off taping the Wall Street Journal
's stock table to the wall, throwing darts at it, and buying the stocks you hit...
There's a good reason why this is the case. It's the same reason most baseball players don't
make the All-Star team. It's the same reason most new businesses fail. It's because most people in ANY professional field are average or below average at their jobs. That's just how the world works.
Armed with this knowledge, we urged readers of DailyWealth Trader
to "go long" stocks in June. Investment newsletter writers were at extreme levels of bearishness... which made us bullish
Our call to go long was well-timed. The benchmark S&P 500 Index bottomed in June... and staged a big 10% rally into September. Newsletter writers in general also became bearish in November. We urged readers to go long back then as well. The S&P 500 has rallied 11% off its November lows.
These days, investment-newsletter writers...
Read full article...
More on sentiment:
We just got another sign investor sentiment is getting "frothy"
Uh-oh: The rare "magazine cover indicator" may have been triggered last week
Top manager John Hussman: Stock market bears are throwing in the towel