Investors Intelligence Sentiment Index (Advisor & Strategy): Statistics, Facts And Historical Backtests!

The Investors Intelligence Index is becoming widely accepted as a means of estimating the balance between the bulls and bears. But what does it actually mean?

Also known as the Advisor Sentiment, Investors Intelligence Sentiment Index is based on contrarian propositions, which suggest equity traders should act opposite to the balance of expert opinion and market trends.

What is the Investors Intelligence Sentiment Index?

The Investors Intelligence Sentiment Index is based on contrarian propositions, which suggest equity traders should act opposite to the balance of expert opinion and market trends. The indicator surveys over a hundred independent market newsletters and assesses each author’s current stance on the market — bullish, bearish, or correction.

It takes a weekly poll of investment advisors and produces three numbers: the percentage of investment advisors that are bullish, the percentage that is bearish, and those that are expecting a market correction.

The report also shows weekly figures that measure the number of stocks that are above their 10-week and 30-week moving averages. The 10-week readings are useful for measuring short to intermediate market turns, while the 30-week readings are more useful for measuring major market turns.

This survey has been widely adopted by the investment community as a contrarian indicator and is followed closely by the financial media. Since its inception in 1963, the indicator has had a consistent record for predicting major market turning points. For more than six decades, the indicator has been reasonably consistent, and its current readings are put into context against historic precedents.

When the survey was first developed, it was expected to indicate the best time to be long as the time when most advisors were bullish. But it turned out that a majority of advisors and commentators were almost always wrong at market turning points. So, the investing community started using it as a contrarian indicator.

Who invented the Investors Intelligence Sentiment Index?

The investor intelligence survey was developed by AW Cohen. At the time he invented the report, he expected that the best time to be long the market was when most investment advisors were bullish, but it turned out that wasn’t the case, as a majority of advisors and commentators were almost always wrong at market turning points. Now, the investment community uses the report as a contrarian indicator when the values are extreme.

History of the Investors Intelligence Sentiment Index

Investors Intelligence was created in 1963. It is one of the longest-standing providers of technical research in the world and has been in operation for over 50 years. The report has been widely adopted by the investment community as a contrarian indicator and is followed closely by the financial media.

The mission has always been to generate consistently valuable, clear, unambiguous, and accurate investment research. Although initially intended to provide direct recommendations on bullish and bearish sentiments, the investment community now uses it as a contrarian indicator, especially