Sentiment is extremely bullish

I have been tracking the bull/bear spread from Investor Intelligence for as long as I can remember. It's not the type of thing I look at every week or even every month, but when it feels like sentiment is extreme, I like to be able to quantify it and this is a great tool for that. I remember using this very chart in the Fall of 2022 and pointing out at the time that I had only seen such bearish sentiment once in my career at the height of the GFC. Today's bullish readings were seen twice during the great bull market of the 2010s and again in the post-pandemic rally. While this is not a precise timing tool, all three episodes were followed by major market corrections. This just tells us that consensus is very bullish and the market is vulnerable to disappointment. We shall see. Happy Sunday. FT