Home Investing Research U.S. Stock Market Update: Investor Sentiment Remains Frothy

U.S. Stock Market Update: Investor Sentiment Remains Frothy

Willie Delwiche
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U.S. Stock Market Update: Investor Sentiment Remains Frothy
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Stocks have climbed a wall of worry for much of the past months so it’s not surprising that investors are getting complacent and have become overly bullish.

Near-term complacency has eased somewhat but weekly surveys are still heavily tilted toward optimism.

Most investors are positioned for late-2020 momentum to carry stocks higher into 2021.

With stock market breadth robust (as seen in both industry group trends and the percentage of world markets trading above their 50-day averages), near-term sentiment risks are more about volatility that sustained weakness. Longer-term, earnings growth expectations (on a median basis) are not unduly high, but overall valuations on both a trailing and forward basis are not consistent sustained stock market strength.

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Twitter:  @WillieDelwiche

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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Willie Delwiche
Willie Delwiche has over two decades of experience providing well-grounded perspective on financial market and the economy, including 15+ years of navigating uncertainty and managing risk through proprietary tactical ETF portfolios. Willie received a BA in Economics and in Government and Politics from the University of Maryland, and an MA in Economics from the University of Wisconsin-Milwaukee. He is a member of the Market Technicians Association and past member of the American Economics Association. Willie is both a Chartered Market Technician and a CFA Charter holder. Commentary from Willie on the economy and financials markets has been featured in national, regional and trade media such as The New York Times, BARRON’S and Kiplinger’s. He has appeared on Fox Business, the Nightly Business Report, and the MoneyLife show. Willie also regularly shares his perspectives via Twitter and other social media outlets. Willie received a BA in Economics and in Government and Politics from the University of Maryland, and an MA in Economics from the University of Wisconsin-Milwaukee. He is a member of the Market Technicians Association and past member of the American Economics Association. Willie is both a Chartered Market Technician and a CFA Charter holder. Commentary from Willie on the economy and stock markets has been featured on other national, regional and trade media such as BARRON’S and Bloomberg BusinessWeek. He has appeared on Fox Business, the Nightly Business Report, and the MoneyLife show. Willie also regularly shares his perspectives via Twitter and other social media outlets.