Investor Fear Hits a New Extreme

Regular Chaikin PowerFeed readers know we're entering a new bull market... At the same time, the American consumer is doing better than the mainstream media will ever tell you. [Chaikin PowerFeed]( Investor Fear Hits a New Extreme By Briton Hill, analyst, Chaikin Analytics Regular Chaikin PowerFeed readers know [we're entering a new bull market](... At the same time, the [American consumer is doing better]( than the mainstream media will ever tell you. And typical "defensive" sectors are [performing worse than most of the market](. Despite that, investors are piling into cash. They're holding more cash than ever. In fact... nearly $5.7 trillion is sitting on the sidelines right now. That's right. This isn't a squishy "it feels like folks are fearful" type of thing. Using one official indicator, we can see that investors are hoarding cash. They're still worried about what might come next. But all the data we have shows that they're making this move at the worst possible time... 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And they can park the cash in the account as long as they want. The total value of money market accounts ebbs and flows over time. If the value is dropping, it tells us that mom-and-pop investors aren't worried. And when it's soaring, we know that these investors are fearful. They're choosing to sit on the sidelines. That's exactly what we're seeing today. Take a look... [Chaikin PowerFeed] As you can see, the total value of money market accounts is close to $5.7 trillion right now. And perhaps more significant, the value of these accounts shot up a lot recently. This trend is important... You see, the value of money market accounts is what we call a "real-money indicator." It shows us what everyday investors are doing with their money at any given time. In other words, we can see how investors are feeling by looking at their actions. Now, we can expect the value of these money market accounts to gradually grow over time. After all, inflation pushes them higher as more and more money enters circulation. But in this case, the massive jump on the far-right side of the chart is noteworthy. You'll notice that the recent move is more extreme (steeper) than most of the past 40 years. We can also use additional data to confirm this shift... Specifically, we can look at U.S. equity-fund flows. This data shows that investors are undoubtedly fleeing stocks – even as the market rallies. For example, U.S. equity funds recently experienced net outflows for eight straight weeks. This is a particularly dangerous decision for individual investors. History shows us that many of the market's biggest moves higher happen during a recovery. That's exactly what we're seeing this year... The broad market continues to climb off its October 2022 lows. The S&P 500 Index is up around 22% since then. And Big Tech, the hardest-hit sector last year, is also soaring again. And yet, the data shows that investor fear is at an extreme level. People are waiting for the proverbial "other shoe to drop." In doing that, they're ignoring the tremendous market opportunity right in front of their faces. Folks, I understand playing defense. But sitting on the sidelines is often a more dangerous financial decision than many folks realize. And a new group of investors is in the process of discovering that today. Where will they be when they realize they've missed the first year of a new bull market? Don't fall into that trap. Good investing, Briton Hill Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.03% 10 17 3 S&P 500 +0.37% 169 239 91 Nasdaq +1.18% 60 32 8 Small Caps -0.75% 521 905 443 Bonds -1.21% Consumer Discretionary +1.28% 22 27 4 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Discretionary +0.46% Health Care +0.17% Staples -0.42% Utilities -1.40% Industrials -1.47% Materials -1.51% Communication -1.68% Financial -2.29% Information Technology -2.37% Energy -3.78% Real Estate -3.92% * * * * Industry Focus Capital Markets Services 9 40 17 Over the past 6 months, the Capital Markets subsector (KCE) has underperformed the S&P 500 by -7.62%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #15 of 21 subsectors and has moved down 6 slots over the past week. Indicative Stocks [rating] TPG TPG Inc. [rating] MKTX MarketAxess Holdings [rating] OWL Blue Owl Capital Inc * * * * Top Movers Gainers [rating] AMZN +4.26% [rating] FDX +3.14% [rating] DG +3.10% [rating] NRG +3.07% [rating] HCA +2.59% Losers [rating] GNRC -5.10% [rating] FDS -4.53% [rating] CZR -4.19% [rating] MTB -3.73% [rating] USB -3.59% * * * * Earnings Report Reporting Today Rating Before Open After Close KMX No earnings reporting today. Earnings Surprises [rating] FDS FactSet Research Systems Inc. Q3 $3.79 Beat by $0.19 [rating] ACN Accenture plc Q3 $3.15 Beat by $0.15 [rating] DRI Darden Restaurants, Inc. Q4 $2.60 Beat by $0.07 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. 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