Which of the Following Indicates the Market Is at Its

question 61

Multiple Choice

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

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Definitions:

Id

The unconscious system of the personality, which contains the life and death instincts and operates on the pleasure principle; source of the libido.

Iceberg Metaphor

A psychological model used to describe the conscious mind as the tip of the iceberg visible above water, with the unconscious mind as the larger mass below water.

Consciousness Levels

Refers to the varying degrees of awareness individuals have of themselves and the environment around them.

Ego

In Freud’s theory, the logical, rational, largely conscious system of personality, which operates according to the reality principle.