Hussman Weekly Market Comment: Shall We Dance?

Last week, Investors Intelligence reported that the percentage of bullish investment advisors increased to 54.3%, with bears contracting to 22.3%. Vickers reported that corporate insiders are again selling at a nearly frantic pace of 9.2 shares sold for every share purchased, and the NAAIM survey reported that the average overall equity exposure reported by active investment managers reached 104.25% at the end of January – a leveraged position, and the highest figure in the history of the survey. Indeed, among individual survey participants, the lowest allocation was 60% - the most bullish exposure ever for the most bearish participant in the survey. The previous record in the survey’s history was 96% in early 2007.