Happy Friday! It has been another tough week for the bulls, especially after the weakness after another hawkish Federal Reserve (Fed) meeting, as my colleague Sonu Varghese broke down here.

I’ve had a lot of questions lately about how could someone possibly be bullish? This is going down as one of the worst years ever for bonds and one of the weaker ones for stocks as well. Investors are losing faith and it is hard to blame them, but that’s just how things work. Once all faith is lost, that is the opportunity. They say it is darkest before dawn and it is safe to say things are pretty darn dark right now.

First up, overall investor sentiment is showing historic levels of worry and fear. In fact, the recent American Association of Individual Investors Sentiment Survey showed the highest level of bears since the first week of March 2009. It came in over 60% bears for only the fifth time ever and as we show below, this could be a great contrarian signal, with the S&P 500 up more than 33% a year later on average.

Lastly, as I discussed on Bloomberg Radio here (at the 32:00 mark), nowhere near the same amount of stocks are making new 52-week lows now as we saw back in June. On the NYSE, more than 1,000 made new lows on June 16, compared with less than 400 earlier this week. We call this positive breadth. The price is near a similar level, but there is more internal strength that isn’t showing up in the overall indexes.

Things aren’t perfect and there are many legit worries out there, but we continue to think the bigger risk is to the upside, as most aren’t expecting it. As General Patton said, “When everybody is thinking alike, somebody isn’t thinking.” Well, a lot of people are thinking more pain is in the cards, which could mean somebody isn’t thinking.

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