Rising Investor Pessimism Is a Contrarian Indicator
“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.”
Those words are often attributed to Sir John Templeton, the legendary investor and mutual fund pioneer who founded the Templeton Growth Fund. While it’s not clear Templeton actually spoke that exact phrase, it succinctly captures the approach that led his fund to be one of the most successful investment vehicles of the 20th century.
If Templeton had not shuffled off this mortal coil in the summer of 2008, he would likely be a buyer now. The latest survey from the American Association of Individual Investors (AAII) finds that individual investors are at their most bearish since November 2023, with 47.3
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