Are we entering the next Bull cycle or are we still Bearish?

Indicator #1:  Public Sentiment is measured by the total number of investment clubs in the National Association of Investment Clubs.

Total number of clubs measured at year end gives a rough sense of the level of interest that the public has in stock investing.  This first graph below shows you how the total number of NAIC clubs measured each fifth year from the founding year of the NAIC in 1955 roughly fluctuates with the cycle rising in a bull market and dropping in a bear market. 

The next graph below measures the total number of NAIC clubs each year and shows you the decline during our recent bear crash from a peak of 37,129 clubs in 1998.  The trend this year in 2005 is that clubs are still closing shop indicating that the general public is disinterested in the market and that you should be out there buying bonanza bases while the herd is looking the other way!

© Copyright 2005 - The Delano Max Wealth Institute, LLC.