The Weekly Brief (17 August 2015) - J.P. Morgan Asset Management

The Weekly Brief (17 August 2015)

Contributor Global Markets Insights Strategy Team

Fears over Greece, China and the US Federal Reserve rate rise have resulted in there being more bears in the market than you’ll find at that oft-sung picnic in the woods.

This negative sentiment is highlighted in this week’s chart, which shows that the weekly bullish sentiment survey, conducted by American Association of Individual Investors, has reached multi-year lows. Should investors be worried? If history is any guide the collapse in sentiment is a strong contrarian indicator for US equities. Historically, when bullish sentiment has dropped below 30% it has on led to 21.3% average return from the S&P 500 in the subsequent 12 months. Past performance is not always a good guide of future performance, however. In the famous words of Warren Buffett: "Be greedy when others are fearful and fearful when others are greedy".

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The Weekly Brief (17 August 2015)

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Important information

Please be aware that this material is for information purposes only. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. JPMorgan Asset Management Marketing Limited accepts no legal responsibility or liability for any matter or opinion expressed in this material.

The value of investments and the income from them can fall as well as rise and investors may not get back the full amount invested. Past performance is not a guide to the future.