The Market’s Decline: Sitting at the Riskiest End of the Spectrum

Between Greece’s recent “no” vote, Puerto Rico’s egregious debt, and the meltdown in Chinese stocks, we’re finally getting a scare in the markets. And while China’s near-6% upturn today might settle few worries, the kind of interventionist tactics they’re using never work. They only make matters worse.

Only time will tell whether this recent market turmoil will turn into something much worse. Maybe it’s short-lived like the last nosedive in October 2014. But right now, owning stocks looks even riskier… and as I’ve been discussing all year, we’ve been in the riskiest end of the spectrum for awhile!

So let’s take another look at market sentiment to see if much has changed given the pullback.

I check several indicators on a regular basis. Two of my favorites are what individual investors think about the market, and what professionals think.

Collectively, both of them are terrible at allocating to equities. Terrible! So when the indicators reach extremes, I like to take particular note.

As of right now, these guys are still very bullish. Currently, 67.2% of their assets are in stocks according to the