The Investors Intelligence Bull/Bear indicators are well respected gauges of overall investor sentiment.  Below is a chart showing the percent of investors that are bullish versus bearish.  In general, when the percent of investors that are bullish moves above 60% this demonstrates an extreme level of optimism.

When we take the ratio of the two indexes we create the Investors Intelligence Bull/Bear ratio as shown below.  When the ratio is above 3 it represents extreme optimism, and when it is below 1 it represents extreme pessimism.

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