(Hedge) Fund Manager Sentiment Reaches Extreme Bearish Levels

[marmar]

from 24/7WallStreet:




Fund Manager Sentiment Reaches Extreme Bearish Levels
Posted: September 6, 2011 at 9:49 am


Hedge fund managers have turned very bearish against domestic stocks. The new data from BarclayHedge/TrimTabs Investment Research Survey showed that Bearish Sentiment on the S&P 500 rose handily in August to 42% versus what was only a reading of 27% bearish in July. While this is often viewed as a contra-indicator, the report shows that over half of those surveyed believe that the economy is already or will slip into recession. This is also coming at the start of September, a month that is said to be the worst month for stocks.

The bulls are drying up as well. The report showed that bullish sentiment fell to 27% in August from 43% before. This was the lowest reading in four months.

The recent drop (what they called a crash) in the S&P 500 was 16.8% from July 22 to August 8 is to blame. Fund managers have also turned modestly bearish on the U.S. Dollar as bearish sentiment on the U.S. Dollar Index rose by 4-points to 34% in August. Bullish dollar sentiment fell to 24% from 33%.

The scary part is on bonds, because it implies higher rates ahead even though the FOMC promised an exceptionally period being two years. These fund managers remain cautious on long-dated Treasuries: 32% are bearish, 15% are bullish. That bond sentiment is as cash inflows have been strong, with recent auction demand being called ‘robust’ and with Treasury mutual funds and ETFs continuing to attract cash. ...........(more)

The complete piece is at: http://247wallst.com/2011/09/06/fund-manager-sentiment-reaches-extreme-bearish-levels/#ixzz1XCoefXaU

[aint_no_life_nowhere]

1. Like economist Richard Wolff said in "Capitalism Hits The Fan"

there is now nothing more to bubble and create profits out of thin air. The Internet bubble won't work anymore. The real estate bubble is no more. Wolff said they thought of creating a new bubble based on the falling dollar and expanding exports but since we're not making anything anymore in this country, that won't work.