![investor sentiment best indicators january year 2021](https://www.seeitmarket.com/wp-content/uploads/2021/01/investor-sentiment-best-indicators-january-year-2021.png)
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.
![investors intelligence bull bear spread chart versus stock market performance january](https://www.seeitmarket.com/wp-content/uploads/2021/01/investors-intelligence-bull-bear-spread-chart-versus-stock-market-performance-chart-january-4.png)
![one year forward price earnings ratio sp 500 index chart year 2021](https://www.seeitmarket.com/wp-content/uploads/2021/01/one-year-forward-price-earnings-ratio-sp-500-index-chart-year-2021.png)
![s&p 500 industry group breadth indicator chart january year 2021](https://www.seeitmarket.com/wp-content/uploads/2021/01/sp-500-industry-group-breadth-indicator-chart-january-year-2021.png)
![percent global stock indices above 50 day moving average chart january year 2021](https://www.seeitmarket.com/wp-content/uploads/2021/01/percent-global-stock-indices-above-50-day-moving-average-chart-january-year-2021.png)
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.