Investor sentiment has reached an extreme level of weakness suggesting US equities will soon rally, according to Marco Kolanovic and his Global Markets Strategy team at J.P.Morgan.
Kolanovic points to the AAII Investor Sentiment Survey, which has recorded its lowest reading since early March 2009 (i.e. just before the Global Financial Crisis trough). He thinks this, in combination with light investor positioning and better than feared Q1 earnings, will allow the US equity market to rebound.
See the latest AAII Investor Sentiment Survey.
Read the full J.P.Morgan report here.