Bull/Bear Ratio Rebounding

Pessimism sells newspapers better than optimism. Pessimism also creates buying opportunities for optimists. Investors are no longer as bearish as they were eight weeks ago. From a contrarian perspective, as we’ve seen just recently, extreme pessimism tends to be bullish, unless the world really does come to an end, in which case, who cares? Here’s a quick update on Investors Intelligence Bull/Bear Ratio (BBR):

The BBR advanced this week for the sixth week, from 0.76 to 1.64 over the period, to its highest reading since early January—as bulls now far outnumber bears. It was at 0.60 eight weeks ago, which was the lowest since the week of March 10, 2009’s 0.56.