According to the Wall Street Journal, for those worried that irrational exuberance is back,Twitter's Inc. hyped initial public offering provides yet another bit of anecdotal evidence.
More quantifiable measures of investors' mood going into the end of 2013 may support that view, too. A particularly worrisome one is the Investors Intelligence gauge of adviser sentiment. Its last reading showed that 55.2% of respondents were bullish and just 15.6% bearish, tying the highest difference between the two this year. The last time the gap was bigger was April 8, 2011, which preceded the sharpest stock-market correction of the current bull market.
More quantifiable measures of investors' mood going into the end of 2013 may support that view, too. A particularly worrisome one is the Investors Intelligence gauge of adviser sentiment. Its last reading showed that 55.2% of respondents were bullish and just 15.6% bearish, tying the highest difference between the two this year. The last time the gap was bigger was April 8, 2011, which preceded the sharpest stock-market correction of the current bull market.
Another signal of froth comes from a weekly survey of retail investors by the American Association of Individual Investors, which has been tracking sentiment since 1987. Though it is volatile, a four-week average of the difference between bullish and bearish respondents is the highest since February and near the upper end of the historical range since 1987.
