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The Bright Side of Extreme Investor Pessimism

Wells Fargo Investment Institute’s Chart of the Week compares the S&P 500 Index versus investor sentiment:

The current sentiment reading indicates that the stock market crowd has become excessively pessimistic. Historically, these pessimistic extremes have indicated that the pendulum has swung too far.

Download: Wells Fargo Investment Institute Chart of the Week: The Bright Side of Extreme Investor Pessimism

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