This story was originally published here.
Everyone wants to know where the stock market's headed next. The answer is hidden in plain sight.
It has to do with sentiment. And it's telling us that stocks are nearly certain to continue marching higher in the coming weeks.
Now, you may think of sentiment as “how the market feels.” But the truth of it is a lot more powerful.
Sentiment creates real pressure in the markets. And the more extreme it is, the more extreme the pressure.
Think about it this way…
If most investors are bearish, the market eventually runs out of sellers. At that point, buying demand starts to exceed selling pressure, and prices rise.
It may sound simple. But it's how markets work.
This fundamental relationship is exactly what we're seeing in the market today. Right now, investors are incredibly bearish… so bearish that the market is almost certain to go up.
Based on history, the market could climb another 18% from here. And the craziest part of it is… if you're feeling bearish, it only reinforces this idea.
Let me explain…
Sentiment is more powerful than most realize. It tells us if buyers or sellers are controlling the market.
When there are more buyers than sellers, the sellers get to set the prices… And they demand higher prices. When the sellers are in the majority, the buyers get to do the price-setting.
Right now, there are more bears in the market than usual. It's no surprise, given what has happened so far this year. But the massive negativity is actually a positive sign for the market.
One way to see it is from the American Association of Individual Investors (“AAII”), which surveys thousands of investors each week.
According to AAII, more than 50% of investors are bearish today. And bearish sentiment recently hit a high of 53%. This might not sound extreme, but it's only the third time in history we've seen a level that high. Take a look…
Editor's Note: To keep reading, click here.
This has never returned less than 400% over 4 years
Something big is happening in America… and almost no one is paying attention.
A completely misunderstood asset is transforming our world… and making people rich (Barron's estimates at least 20,000 people).
And get this: If you bought and held this asset over any 4-year period, since 2010… the SMALLEST gains you would have potentially seen would have been a whopping 400%.
Even if you bought it on the worst day possible!
But that's only the beginning of the story… it's actually much bigger than all of that.
One of the smartest and richest men I've ever known has produced a simple analysis that explains the full story.
I promise you've never seen these ideas, concepts, facts, and figures, discussed anywhere else. That's because there's simply no one in the financial world who thinks like Porter Stansberry. He is truly one of a kind.
Take a few minutes to see Porter's latest incredible analysis, right here…
P.S. If you want to know why socialism is erupting in America, read Porter's latest. If you want to know why thousands more people are about to lose their jobs, it's all explained here. If you want to know how to potentially make 100-times your money while so many Americans lose potentially everything… this is a must-read. You'll find the full story on our website here…