The same investors who thought the stock market was such a dreadful place last year have changed their tune. Now they’re excited about AI (it could be bigger than the internet!) and have dubbed mega-cap growth stocks “magnificent.” You might be feeling like you’ve seen this movie before. It’s called market top and star investor euphoria. The ending is terrible.
Using investor sentiment to identify key turning points in the market is a tricky endeavor. Your likelihood of success largely depends on the answer to one question: bull or bear?
