The Only Reason To Be “Bearish” Is “No One Is Bearish”

Posted by Lance Roberts

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I had to do a double-take recently when reading a CNBC headline that stated: “The only reason to be bearish is there’s no reason to be bearish.”

It is indeed hard to argue the point. As the article explained:

A majority of investors finally agree the V-shaped recovery is at play,” according to the Bank of America Global Fund Manager Survey. Plus, a record percentage of money managers believe that global growth is at an all-time high.”

Key Findings

  • More than 90% of investors believe the economy will be more robust in 2021, with a consensus it’s a V-shape recovery. For the first time since January 2020, chief investment officers want to increase capital spending rather than improve balance sheets.
  • Fund managers’ allocation to cash is down to 3.8%, the lowest since March 2013. Such was just before the “taper tantrum” era under former Federal Reserve Chairman Ben Bernanke.

When “everyone is in the pool,” it is an excellent time to remember a basic premise of investing from our post on trading rules: 

Opportunities are made up far easier than lost capital.” – Todd Harris

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