User: Nf6: Sentiment: Screen-Shot-2012-07-02-at-6.58.39-PM1.png 718×388 pixels

Screen-Shot-2012-07-02-at-6.58.39-PM1.png 718×388 pixels

Equity & Quant Strategist at BAML, Savita Subramanian, issued a report titled Wall St. Proclaims the Death of Equities. The report discusses the firm’s proprietary sell-side indicator, which has reached near record levels of bearishness, which is of course bullish for stocks. It should be noted that the indicator’s focus is equity allocation: It “is based on the average recommended equity allocation of Wall Street strategists as of the last business day of each month. We have found that Wall Street’s consensus equity allocation has historically been a reliable contrary indicator.” From the 7/2/12


Great chart that I think is very actionable. The world is short/bearish and the path of least resistance is up. I can't believe the irony of the chart coming from a sell-side firm (essentially their analysis is that their recommendations should be faded). 7/3/12
Tim KnightTim Knight
An intriguing chart, although a little surprising - - the notion that any group of individuals is MORE bearish now than in early 2009 seems highly implausible, to say the least. 7/3/12