This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

European Stocks Might Be Getting Too Frothy

One of my favorite reads every month is Merrill Lynch's global fund manager survey.

OK, I admit it. I'm a nerd.

But it can be a treasure trove for investors.

The reason? It tells you where the big money crowd -- the people managing billions of dollars at big pension funds and investment companies -- are placing their bets. These are the people who move the markets. So the information isn't just interesting in its own right. It also can point to opportunities to make money.

Which is, of course, the point of it all.

Sometimes you can spot an emerging trend before it really gets going. Other times you can find cases in which the big money crowd is already overcommitted in favor of a particular asset class. That can sometimes create great opportunities for big contrarian bets, especially when you realize the herd instinct among fund managers means they will all try to stick with the crowd -- even when they shouldn't.

My favorite all-time moment was in April 2003, when Merrill reported that global fund managers had become totally bearish about the Japanese stock market. They had dumped their Japanese shares in disgust, after years of underperformance, and pretty much given up on Tokyo.

"Fund managers are more out of love with Japanese equities than we have ever seen before," reported Merrill's then-strategist David Bowers.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BWP $16.85 0.00%
EWG $30.18 0.00%
EWQ $27.56 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs