I wanted to document some of the news and feeling going around the markets in October. Historically October always causes a bit of worry to investors but there is overwhelming reports that investors are bearish and expect this market to be at it’s top. Throughout the years, watching markets historically, when you see the majority on one side of the spectrum, this is when a long term move gets more energy and confuses everyone.
Thus the saying “The majority needs to be wrong, in order for you to be right”. This allows those to keep shorting the market, so the assets become available to purchase.
Let’s see what fund managers are thinking…
Above shows when asking fund managers how the global economy will develop over the next year. Roughly 38% expect the economy to slow and is the worst outlook since November 2008.
Above shows between October 5th thru 11th, a really bearish picture on the global economy. From the poll is 85% think the global economy is in the late cycle.
We have others saying retail investors are growing bearish too.
CNN Money Reported This Headline:
Below is the headline from CNN Money that states “A top JPMorgan Chase Executive is warning that stocks could fall as much as 40% in the next few years”.
Now with our recent dip in the market, it appears more are still very bearish. What has always served well in the markets is the majority must be wrong. This is where the markets make the biggest moves. So let’s keep watching the long term and consider what is happening on a global scale and while it is a bit volitile in equities, where else can capital go till 2032.