Morgan Stanley recently published a report that argues the rally in European markets isn't over yet, despite recent Bearish activity.
Using data from the American Association of Individual Investors, one can see that the market has recently become very Bearish.
Here's the graph Morgan Stanley created from the data.
But this information is made more complex by another Morgan Stanley chart, which purports to show that this is merely a transitional period into the tightening phase that comes after the post-recession boom.
The US stock market is up about 9% since June 1 despite weakening fundamentals for US companies and weakening economies around the world, including in Europe. Morgan Stanley's Adam Parker thinks the reason for the rally is investors... Read Post
Morgan Stanley strategist Adam Parker (who is pretty bearish these days) recently said that one thing that might cause a stock market rally is the expectation that Mitt Romney will win the election. The idea of a Romney Rally is eas... Read Post
(This post previously appeared at the author's blog) Morgan Stanley isn’t jumping on the bull market bandwagon as investors ignore issues in Europe and snatch up risk assets (see their bearish 2010 outlook here). In fact, MS says i... Read Post