Daily Report : Bond sentiment turns sour; Mom and pop finally turn optimistic

Sentiment on the bond market is starting to wane. The Optimism Index for that market just dropped below 50% for the first time in more than 6 months, which has tended to lead to further losses (and rising interest rates). Stocks held up well after these signals.; The latest AAII survey shows a nearly 70% ratio of bulls to bears, the highest in years. When optimism turns high after a protracted period of pessimism, it has led to above-average returns, especially over the past decade.