The Barton Biggs Indicator

The Barton Biggs buy signal just went off again. It picked the bottom this Summer and last within a couple of percent. Barton Biggs is generally bullish. When he turns bearish it usually means sentiment is at an extreme. From Bloomberg:

3 comments:

Onlooker from Troy said...

Wow, it would be truly amazing (and embarrassing for him) if he nails another bottom.  This one is a bit different, not being an intermediate low.  I must say, we could go either way right here.  Tough to call.

Tsachy Mishal said...

Other sentiment indicators are not as extreme as his last two calls, although today's fall might change that somewhat. Would make this truly amazing if he nails it.

Matt said...

Update: On 11/21, Biggs equity exposure was at "less than 40 percent and might reduce it another 15
percentage points." But he didn't waste time buying back in AFTER the market bounced. Today, he's back up to 60% equity exposure. See the article for a few more turning points in September/October that he got wrong, too. http://www.bloomberg.com/news/2011-12-02/barton-biggs-lifts-stocks-bets-saying-it-s-hard-to-get-really-bearish-.html

And we're always told that it is retail investors who are investing based on their whipsaw emotions. No, it's the hedge fund managers.