Wall Street Sentiment Survey Might Have Called the Stock Market’s Turn – The Wall Street Journal

Earlier: A look at the markets shows asset managers are moving money around in ways that suggest they see a recession coming. WSJ’s Dion Rabouin explains what to look for and why they tell us investors are increasingly pricing in a recession. Illustration: David Fang

Investors have scoured reams of data for evidence that 2022’s market rout is over. A six-decade-old survey might have made that call in June.

Investors Intelligence’s ratio of bullish advisers to bearish ones, known as the bull/bear ratio, fell to 0.60 during the week of June 21. That was the survey’s most-pessimistic reading since the week of March 9, 2009, when it fell to 0.56, according to Yardeni Research. That date also marked the lowest closing level of the financial crisis, with stocks falling 57% from their October 2007 peak before skyrocketing.