However, some of the best times to buy stocks are when blood is in the streets and sentiment is in the gutter. For example, speculators are extremely bearish on the euro and individual investors appear to have thrown in the towel on equities.
Anecdotal evidence paints a similarly bleak picture. For example, a recent Financial Times story proclaimed “the end of a six-decade passion for equities.”
“The story may evoke a feeling of déjà vu for some. Especially those who read the August 13, 1979 edition of BusinessWeek, which famously also announced ‘the death of equities,’” FT Alphaville remarks.
Just remember, that 1979 BusinessWeek cover marked the opening phase of one of the greatest bull markets for equities in U.S. history.
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