How deep run the financial scars of investors, and the memories of what caused them, from the 2008/09 recession, dot.com, the fall in 1990/91 and prior in 1981/82? The American Association of Individual Investors (AAII) report shows investor sentiment has meandered for the past year either near or below where it was back in March 2009. That’s a deep wound.
Little wonder that the AAII investor sentiment readings are registering at manic depressive levels, collared by continued news of investors running away from equities like Janice Dickinson from a Bill Cosby wine-tasting party.
The stock market investor herd is comprised of panicky beasts; easily startled by crises large and small, wincing at any mention of recessions past, and judging their investments in terms of days, weeks, months and even hours.
If we get lucky enough to see $60 per barrel again, rest assured we will see a new flood of oil, the spigots will be turned on in earnest and capped wells will run freely.