Individual investors are now officially giddy

Individual investors are now officially giddy for stocks. As measured by the AAII survey, individual investor bullishness rose to 51.2 from 49.6 last week, to the highest since May ’08 while Bears fell to 21.6 from 25.2, the lowest since Jan ’06. Luckily we have to wait less than a week now to see what’s been priced in and what hasn’t been. The 10 yr Irish bond yield has broken out to a new high in response to the story that a block of subordinated bondholders will vote against the Irish government’s plan to restructure it. The bonds are currently trading at .20 on the euro. The yield at 6.83% is well off its early morning high because there is speculation the ECB was in the market buying Irish debt. The cost of insuring Irish debt is higher by 22 bps to 466bps, just 24 bps from a fresh high. The Euro is higher notwithstanding after Euro Zone economic confidence rose to the best since Dec ’07.

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