The speed of the stock markets advance has convinced many pundits that we're in a similar bull market recovery to that from 1933.
But back then, dividend yields were sky high, P/Es were low and sentiment was extremely bearish. Today the opposite is the case. In fact the current level of bullish sentiment is even above that of the all-time high in stock prices in late 2007 (by various measures). This is also reflected with fund managers now holding the lowest percentage of cash on record (ie. we're ALL now fully invested). And the rally now appears to have exhausted on waning market breadth (loss of upside momentum) with the early signs that a market reversal is underway.
So contrary to the complacent consensus, these indicators are more compatible with a stock market reversal back down into the underlying bear market trend than a continued rally to new record highs.
