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Market Savvy

More Investors Are Bullish on Stocks

November 12, 1998|Bloomberg News

Optimism about U.S. stocks among investment newsletter writers has risen for the eighth week--the longest streak since 1981--to the highest level in 16 weeks, according to a poll by Investors Intelligence newsletter.

The poll, conducted late last week and reported Wednesday, showed the percentage of investment advisors who consider themselves bullish, or optimistic, about stocks rose to 53.1% from 47.8% the previous week.

Although surging bullishness is often viewed as a "contrary" signal--meaning it often signals at least a near-term market top--"the indicator is not in classic bearish territory yet," said Greg Nie, a technical analyst at Everen Securities in Chicago.

"The closer you get to 60% bulls and 20% bears, the closer you're getting to red-flag territory."

The proportion of advisors who considered themselves bearish, or pessimistic, about U.S. stocks in the most recent poll fell to 35.4% from 38.3% the previous week.

Those not outright bullish or bearish expect a short-term market pullback.

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