SocGen: “Complacency” indicator implies market top
There’s no shortage of indicators out there, which claim to be able to forecast the beginning of the next bear market. Only few of these indicators have been proven to work on more than one occasion with any degree of accuracy, but that doesn’t stop investors and analysts clinging to these indicators in an attempt to try and time the markets.
One such indicator is a “complacency” index from Societe Generale. The index measures the daily number of Bloomberg articles containing the word “complacency” or “complacent”. This indicator reached a record high last month as equity markets swooned and bond yields continued on their relentless path lower.
