If There Remains Any Doubt About The State Of Investor Sentiment, This Chart Provides Compelling Evidence

Jonathan Baird CFA
2 min readJun 30, 2021

Facts Are Stubborn Things

History has taught that the surest way to generate superior investment returns is to identify extremes of investor sentiment and trade against consensus opinion.

We have recently published a series of posts illustrating the extreme investor optimism that continues to grip markets, with the chart below providing an excellent example.

Capital inflows into global over the past months has exceeded the combined total of the past 12 years!

An old maxim is that market tops require the broad participation of retail investors. That criterion seems to have been fulfilled.

This strategy of trading against “the crowd” can be psychologically difficult, but we believe the price of successful investing includes psychological discomfort.

Our upcoming July issue discusses our strategy for protecting the profitability of our long positions and approach to navigating the market volatility we anticipate. And as usual, we update our views of major equity, bond, currency, and commodity markets.

If you found this post of interest, you’ll find the Global Investment Letter of value. To view free sample issues and to receive our weekly investment comment please visit: https://www.globalinvestmentletter.com/sample-issue/

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Jonathan Baird CFA

PUBLISHER OF THE GLOBAL INVESTMENT LETTER. AWARD-WINNING MONEY MANAGER. SPEAKER ON GEOPOLITICS AND MARKETS. www.globalinvestmentletter.com