Friday, March 2, 2012

Investors Are Still Worried That Stocks Could Crash

Sam Ro

Despite the improving economic data and notable rally in the stock markets, investors still aren't completely convinced that we'll be able to dodge a stock market crash within the next few months.

This is according to the Yale School of Management's crash confidence index (h/t Bespoke).

We last checked in on this measure in January when it had fallen to its lowest levels since early 2009.  The lower the reading, the less confidence investors have that we'll avoid a crash in the next six months.

Since January, the index has improved for both individual and institutional investors.  Yet they remain at levels seen in 2009.

However, like we mentioned in January, low readings in the crash confidence index have preceded monster bull runs in the stock markets.
 

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