You're watching...
Schaeffers Investment’s Ryan Detrick argues there will not be a pullback in the markets because of investors’ bearish outlook.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Technical strategist for shapers investment research -- I think it's really interesting that you are bullish because of three key factors that you're looking at tell us about those I -- they start with.
Mutual fund -- Let's say it exactly right -- -- -- bullish for awhile in the main reason is we still think even though we've had this good price action overall in the last five days and sold off.
Overall sentiment still way too low we look at investor sentiment polls.
They're still way too low will still not nearly as many bulls who see a major peaks and talk about mutual fund flows.
We just had ten consecutive weeks of equity mutual fund outflows nine million the last week has been rough but some of those weeks going into that.
Pretty good price action so again there's a lot of people is too much skepticism and our opinion all -- all.
And we've been seeing this for awhile now the individual investor simply does not trust this market USA that they had a really are sort -- yesterday talking about the small guy how they simply.
You know four years have to get burned they still don't wanna touch stocks we've been seen after going on three years now and for that for that reason -- -- lowered.
We still look at the economy the credit markets are really doing well look -- junk bonds continue well shows the risk appetite still there.
We still think you know you want to -- to the upside here.
But the little guy is bearish what do you think he's an idiot is that is that -- -- meter saying he's very very senior bullish.
Well that's exactly right I would say an idiot but I don't think there's definitely some to be contrary indicator -- we've been I think after a few years now and and not just a little got to look at hedge funds hedge funds overall lot of work we do with the options -- it does -- tell us to hedge -- really -- a lot of this rally.
That's how we think the union hall pull -- will be short violence -- -- we've seen classified days in this hedge funds institutions which have missed a lot of this rally so -- I don't know bottom line it is.
Here you don't keep you didn't keep -- because of your views because you think that that market is overall bearish that the general masses out there are overall bearish.
You think there will not be then the pullback.
That we saw last year or the year before when people became too optimistic.
Too bullish on the market and then.
Got really scared and pull back dramatically we won't have that dramatic pull back in May through August is that what you're saying.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That some of the unemployment figures and others suggest.
Bank lending for example the Federal Reserve and it's a very good news on bank lending which is that it was up pretty significantly in the first several months of this year right.
That's exactly right and what's in the best indicator we think for the overall economy going on the last five years it's been credit markets credit markets stopped working for a financial crisis -- they sort of taken the full year again early 2009 mid 2009.
Now -- this little law wouldn't economic data will Begin credit markets banks are lending the junk bond -- very strong we think credit markets are working in that should lead the economy stronger second half the year.
