Sentiment indicators key to market turning points - Cazenove Capital

Discussing portfolio construction at Professional Adviser's Spring Multi-Asset Roadshow, Rock (pictured) referred to a chart from the American Association of Individual Investors (AAII), which asked investors if they were bullish or bearish on markets over the coming six months. It then divided the bulls by the bears to arrive at the following chart. Source: AAII/Cazenove Capital "In March 2009, at the bottom of the market, there was maximum bearishness among individual investors, which was a really good contrarian indicator," said Rock. He then pointed to the market volatility...