The stock market has been booming over the last year and keeps reaching new historic highs. People who work in the industry have high confidence, too. The highest in years, in fact.
Stock market optimism from pros reaches highest level in nearly 32 years
Stock market optimism among professional investors just keeps on surging, and is now at the highest levels since before the crash of 1987.
Bullishness, or the belief that the market is heading higher, is now at 66.7 percent in the latest Investors Intelligence survey, a widely followed gauge of sentiment among investment newsletter authors.
That’s the highest level since early April 1986 — a potential warning sign that the rush into equities is getting overdone. After all, a year after the bulls had reached this level came the infamous Black Monday crash that sent the Dow Jones industrials down nearly 22 percent in a single day.
“Sentiment readings have roughly followed their 1986/87 pattern. Then the bulls peaked with initial market highs early that year and they returned to above 60% levels months later after more index records,” John Gray, editor of the Investors Intelligence weekly report, said in the latest issue Wednesday.
This is great news for the American people. As the economy continues to recover and grow, more new jobs will be created.