Which of the following indicates the market is at its peak, according to contrarians?
A) The short-interest ratio is low
B) The bearish sentiment index is around 20 percent
C) Mutual fund liquidity is low
D) The number of stocks hitting all-time highs is low

Question

Quizplus · Accepted Answer

Contrarians believe that low mutual fund liquidity indicates that funds are fully invested, suggesting a market peak as there is little cash left to drive prices higher.

Which of the Following Indicates the Market Is at Its