Contrarians, Beware: Investors Are Not Stupid!

Wednesday, March 2, 2011

We’re getting a flood of warnings that it may be time to sell. Why? Because, individual investors are buying stocks again!

The argument is that when investors panicked after the market dropped in early 2009, it was a good time to buy. Therefore, after two years and a 100% stock market rise, investor buying is a sign to sell.

Not so fast. There are major problems with that logic.

(more)

This article is on SeekingAlpha.com

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