Investors are also continuing to hold onto their bullish sentiment. In the weekly AAII Investor Sentiment Survey for the week ended December 4, 42.6% of individual investors surveyed were bullish on the stock market for the next six months, down 4.7% from the previous week. (Source: American Association of Individual Investors web site, last accessed December 10, 2013.) In the survey, 27.5% were bearish and 29.8% were neutral, which was a 5.4% rise from the previous week.
I’m not at all surprised with the findings, as investors generally don’t want to miss out on any additional gains in the stock market as we move into 2014, which will likely be another good year for stocks; albeit, I doubt it will surpass the advance we will see this year.
While I will be offering my view towards 2014 early in the New Year, I feel the investment climate of easy money, economic renewal, and jobs growth will help support stocks heading into 2014. So feel free to ride the current stock market gains; but at the same time, you should make sure you take some profits off the table and have some capital available for buying, just in case the stock market shows some temporary weakness, which could be a buying opportunity.
This article is brought to you courtesy of George Leong from Investment Contrarians.