What
is behind investors’ apprehension toward stocks? A combination of concerns ranging from fears
of a speculative bubble in small cap stocks to misgivings about Fed policy to
geopolitical instability and rising oil prices is putting a lid on investor
optimism. Michael Purves of Weeden &
Co. was quoted by Businessweek as
calling this phenomenon the “wall of hatred.”
That’s as good a description as any to describe the mass feeling right
now….
On a related note, a new Gallup poll revealed
that fewer Americans are satisfied with their level of freedom. The report ranked the U.S. number 33 in the
world in the freedom poll. A separate
poll by Pew Research found that the percentage of Americans who believe their
country “stands above all other countries”
dropped from 38% in 2011 to 28% in 2014.
Only 15 percent of 18-29 year-olds said the U.S. is the world’s leading
nation.
Rick Newman writing in Yahoo
Finance commented: “The recession that ended in 2009 ravaged the economic
fortunes of many American families, with median household wealth still about 40% lower than it was before the recession. Jobs have finally started to return, but for
many workers, pay is lower than it used to be. People feel they’re falling behind, and the
data show they’re not imagining things. That’s
a loss of economic freedom, which impacts other choices.”
The latest Gallup and Pew
Research polls provide even more insight into the currently depressed
psychology on Main Street. This jibes
with the above mentioned investor sentiment surveys which reveal a decidedly
negative view of equities....
[Excerpted from the July 7
issue of Momentum Strategies Report]
