Lots of the largest CFD brokers offer research and reports to clients and investors. One of the most famous of these is Investors Intelligence, whose US Advisors’ Sentiment Report has been helping traders since 1963.
The report is one of the most well known and influential currently available and has a consistent record for predicting major market turning points. It was launched in 1963 and is widely used by the investment community as a contrarian indicator. It is also closely followed by the financial press.
Investors Intelligence – who also offer spread betting accounts – studies over a hundred independent market newsletters in order to assemble each report. Each author’s current position on the market is analysed, whether that is bullish, bearish or correction.
The company has had just four editors of the report since it began, and this has led to a consistent approach to considering each advisor’s stance. Weekly sentiment data runs consistently back to the 1960s, allowing current readings to be put into context against historic precedents.
Of the report, Investor’s Business Daily says:
“Since 1963, Investors Intelligence has shown that when the majority of gurus were bullish, the market was near a peak. And when the majority was bearish, the market was likely near a bottom. The reason is simple, but counterintuitive: When investors get overconfident, available money is in the market. Who’s left to invest? When the majority is bearish, vast sums are on the sidelines. A few investors who sense a bottom can start a stampede of bulls.”
The report is often cited in major media sources including the New York Times, CNBC and the FT.com have also identified the value of the report.
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.