These words of wisdom helped theBut these days, institutional investors in stocks are struggling to apply his principle. They are confronted with an investing landscape that contains sufficient risks to be fearful of, but lacks the bullish pointers that would warrant a contrarian posture., the deputy chief investment officer of State Street Global Advisors, which manages nearly $2.9 trillion in assets.
In addition, investor sentiment as measured by the AAII bull-bear indicator has deteriorated to levels seen during the 2008 financial crisis and the market meltdowns in 2015 and 2018."As the US-China trade war destabilizes the global economy and Trump's tweets continue destabilizing financial markets, many managers find it difficult to be invested in equity markets," Kolanovic said.
This might be such an occassion, according to Michael Hartnett, the chief investment strategist at Bank of America Merrill Lynch. He said in a recent note that the firm's bull and bear indicator flashed a contrarian"buy" signal for the first time since January.