An August New York Times article pointed out that bearish sentiment, as measured by the Conference Board, had hit an all-time high. Fully 55% of the people questioned in July expect the stock market to decline over the next 12 months.
Why is this important today? Because each time bearish sentiment has exceeded 35% over the last 21 years, the market has confounded that sentiment by gaining ground over the following year, at an average pace of 20.5%.
~ Jim Mueller, "Buffett Says It's Time to "Be Greedy," The Motley Fool, October 1, 2008