Technicians using the confidence index published by Barrons to make investment decisions
A) Believe the ratio is a bullish indicator because during periods of high confidence investors will invest in higher quality bonds.
B) Believe the ratio is a bearish indicator because during periods of high confidence investors will invest in higher quality bonds.
C) Believe the ration is a bearish indicator because during periods of high confidence investors will invest in lower quality bonds.
D) Believe the ration is a bullish indicator because during periods of high confidence investors will invest in lower quality bonds.
E) None of the above.

Question

Quizplus · Accepted Answer

Technicians using the confidence index published by Barron's believe that the ratio is a bullish indicator because during periods of high confidence, investors will invest in higher-risk securities, such as lower quality bonds, stocks, and other assets. Therefore, they consider the ratio a bullish indicator because it signals that investors are willing to take more risks and invest in potentially higher-yielding securities.

Technicians Using the Confidence Index Published by Barrons to Make