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January 31, 2006
UBS investor optimism increases for fourth straight month.
Highest Level in Year and a Half; Investors Confident about Outlook for Economic Recovery; Energy and Healthcare Top Investor Concerns for 2006.
Investor optimism has surged to a 19-month high, according to the latest UBS/Gallup Index of Investor Optimism, with investors continuing to express confidence in the performance of the U.S. stock market. Now at 93, the Index is up 14 points from last month and 59 points since September 2005. The last time the Index was this high was in June 2004, when it reached 95.
Is investor optimism unwarranted? Oil prices are high, but so are stock prices. This goes to show that investor optimism is more geared towards stocks prices than oil prices. The S&P 500 has been moving higher since October 2002 and shows no signs of stopping now. Net New Highs on the NYSE reached +440 on Monday and this is also a sign of strength, not weakness.
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Posted by Arthur B. Hill at January 31, 2006 06:33 AM