Should you be anything but bullish on stocks? That’s the chatter on the Street Wednesday as investors eye what’s shaping up to be the best December in nearly two decades.
The S&P 500 has gained 6.7 percent so far this month and has risen in 17 of the last 20 sessions.
Not only is the market trading above levels reached on Sept. 12, 2008, the last trading day before Lehman Brothers collapsed, it’s on course for its best December since 1991.
And sentiment on the Street is certainly optimistic.
A recent Trim Tabs/ BarclayHedge survey showed hedge fund managers have turned extremely upbeat on U.S. equities - about 46 percent of 92 managers surveyed in the past week were bullish, while only 19 percent were bearish
And on the other side of the coin, short interest in the S&P 500 has fallen to just over 4%; that's the lowest level in over 4 years, according to Bespoke.
Are investors rightfully optimistic or way too complacent in their expectations of further gains? How should you position now?