You get the idea. But there are two good indicators of investor enthusiasm, and neither is well followed. The first is the money flowing in or out of a particular type of mutual fund. For the 12 months ended June 30, large-company value funds were the least loved. In short, investors hated stodgy funds with a penchant for dividends.
New funds are another good contrary indicator.
When the industry sees a trend, such as Internet stocks, they roll out funds that specialize in that sector. But it can often take a while to launch a new fund. They have to find a manager and push the fund through Securities and Exchange Commission registration. So by the time many new funds appear, the bull market in that particular sector has not only had its run, but is being turned into hamburger. We have seen 143 growth funds file for SEC approval this year,'' says Marc Wojno, reporter with Federal Filings, which tracks fund registrations.