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Don’t think the stock market is out of the woods just because Wall Street’s exuberance has cooled considerably.
That’s worth pointing out because it otherwise appears that contrarian analysis has given the bull market a new lease on life. A month ago, you may recall, the average stock-market timer was more optimistic than on 97.4% of all other trading days since 2000. Today, in contrast, the average timer is close to the middle of the spectrum between extreme pessimism and extreme optimism — a marked reduction in exuberance.