80% bullish on large caps

[DeepFried]

From bloomberg.com:

"Money managers are more bullish on large-company stocks than they have been in seven quarters, in part because they expect the Federal Reserve to end its series of interest rate increases soon, according to a survey of 112 investment management firms with $40 billion in assets conducted by Russell Investment Group between Nov. 28 and Dec. 5.

<b>Eighty percent of those surveyed are optimistic that large- cap stocks will perform well next year</b>, up from 65 percent in the previous quarter. The S&P 500 is up 4.3 percent this year, following gains of 9 percent last year and 26 percent in 2003."

 

[nazzdack]

The extreme bullish sentiment is occuring at ~4-year highs in the market. Thanks for the sell signal. Index fund buying tends to support that also. Money managers tend to be more bullish on large-cap issues more often because those stocks have the most influence on the benchmark indices, i.e. MSFT, GE, WMT, GM, XOM, INTC et al. We'll see how it all pans out.

 

[DeepFried]

Yeah, I keep trying to come up with reasons to be bullish and this article gives me the creeps. Jan 06 might turn out as ugly as Jan 05.

 

[Bongo972]

06 is going to suck so much ass.

 

[dac8555]

i dunno. granted, fund managers are trying to get more funds to pad their pockets....but some key element have happened to where i am no longer AS bearish as i was. the key thing inflation being under control. unemployment is unser control, and consumer confidence and spending are increasing.

i havent picked a side of the fence yet for 2006.

 

[AltarEgo15]

I would think that the tone of next year's BOND MARKET would be much more of a significant factor than whether or not their is some sort of a big bullish consensus on large cap stocks.

Most money managers are bullish to begin with.
That's what they do for a living.

 

[Pathus]

Since they are all bullish, that implies they are all fully invested. All they can do now is sell. LOL

 

[EBenson]

bullish or bearish - all the same...
just give us volatility

 

[craneman]

Quote from DeepFried:

<b>Eighty percent of those surveyed are optimistic that large- cap stocks will perform well next year</b>, up from 65 percent in the previous quarter. The S&P 500 is up 4.3 percent this year, following gains of 9 percent last year and 26 percent in 2003." [/B]

When everyone leans one way the boat flips over. Sounds to me like they're looking to get out but drive prices up first.

 

[buzzy2]

yes this whole pattern since last month looks like huge distribution to me, but can't rule out new highs yet.