Hey, Ross here:
Many people ask – should I be bearish or bullish?
But that’s the wrong question.
Let’s see what the right question really is.
Chart of the Day
This is the latest results of the weekly sentiment survey by the American Association of Retail Investors.
Over the past two weeks, retail investors have become even more bearish – with the bears outnumbering the bulls.
And yet, as we come to the tail end of earnings season…
Wall Street analysts are more optimistic than ever.
As you can see below, they’re projecting strong earnings growth across the board – not just for the S&P 500 companies – but for almost every company.
In fact, for small-cap companies on the Russell 2000 – they’re projecting a whopping 62% EPS growth.
Now, don’t get me wrong.
I’m not saying the Wall Street analysts are guaranteed to be right. Trust me, plenty of them are completely clueless.
But as a whole, I would say they’re far better informed than most retail investors.
And that leads to today’s critical insight below.
Insight of the Day
The right question isn’t “should I be bearish or bullish?” – rather, it’s “WHO is bearish or bullish?”
Like I said, too many people are concerned with whether they should be bearish or bullish.
Of course, I totally get why.
But the most important question is WHO is bearish or bullish.
Now, although it’s true that I just said that I give more weight to the views of Wall Street analysts versus the average retail investor.
But, when it comes to looking at WHO is bearish or bullish…
I’m looking at the views of two groups…
The “smart money” (the institutional investors) and the corporate insiders.
The institutional investors can move the entire market…
Meaning they can actually determine whether or not you should be bearish or bullish on the entire market.
Right now, the data is telling me they’re more on the neutral side overall.
You can see this in how sideways the market has been moving.
But the corporate insiders are a different story.
I’m seeing an uptick in insider buying…
Which is something that usually happens at the early stages of a rally.
I’m going to be sharing something more about this insider buying tomorrow morning – so keep an eye out in your inbox for that.
In the meantime, if you want to see how to protect your portfolio – and even benefit – from the changing world order…
Customer Story of the Day
“Ross Givens from Trader’s Agency is an awesome resource to help you with your investing needs and investing education.
I waited about three months to write this review to give myself time to see the impact on my portfolio and I have been completely satisfied.
Ross has a no nonsense, simple approach that makes it easy for all investors and he takes the time to answer all questions on a weekly basis.
Thanks, Ross and Traders Agency!”
Ross Givens
Editor, Stock Surge Daily
