The reluctance of retail investors to buy stocks as the Dow hits new highs suggests that the rally has further to run. Just be ready to grab your coat once Mom and Pop show up at the party. That's a sure sign it's time to go.
Mom and Pop and Sentiments
It is extremely rare to see bullish story on market from the perma bear mouth piece- Barron's. This week at least the cover story is making a valid point about sentiments. The mom and pop are skeptical of rally. Unlike the top in 2000 where bullish sites and bullish newsletters were rage, we have bearish sites and bearish bloggers dominating in popularity.After all most blog readers are mom and pop investors and they are showing their sentiments by flocking to purveyors of gloom and doom blogs in thousands. That is one of the best indicator of sentiments being bearish as the market has gone up. As long as that continues,rally has legs. Rally will have corrections but all dips are buying opportunity.