My Contrarian Bones, II

On Friday, I addressed my obsession with bank
stocks. I get plenty of mail regarding this topic, and yes, some of you
wonder if my banks stock obsession may be a little unhealthy.

The answer, yes, it

Investor Sentiment is Awful

The stock market failed to build on the rally from Friday.
The S&P 500 fell below support at 1,050 yesterday.

Right now, sentiment is just awful across the board. And
we’re heading into what’s traditionally the worst two months of the year for
stocks: September and October.

Volume in the stock market has been extremely
light. This suggests that individual investors are not buying stocks. And we
can see that in mutual fund flows. In July, bond funds attracted $25 billion
dollars. And investors pulled $12 billion out of
U.S. equity funds.