PPI, CPI and Profit Margins

If you have been following the site for awhile you know that I frequently focus on profit margins. Currently, the profit margin on the S&P 500 index is 8.1%[1] versus a median level since 2000 of 6.5%. Corporate profits as measured by GDP[2] are 8.2% versus the long-term average level of 6.0%. As I have [...]

Sentiment Update: We Won’t Get Fooled Again or Meet the New Year, Same as the Old Year

Both investor sentiment surveys I follow showed bullish sentiment remains wells above average. The NAAIM (active money managers) survey for this week showed a minor decrease of 1.7% in bullish sentiment while the AAII (individual investors) survey showed an increase of 4.3%. This week we will take a look at one additional chart courtesy of

Investor Sentiment and Subsequent Returns

A recent post by The Pragmatic Capitalist on the topic of investor sentiment has me curious regarding the correlation between sentiment and subsequent returns of the S&P 500 index. Last weeks’ survey has bullish sentiment at 45%. This analysis will consist of data from the AAII Investor Sentiment Survey and be divided into four sections. [...]