0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09

AAII bearish sentiment & JSCO pain index

Bea

rish

Sent

imen

t and

JSC

O P

ain

Inde

x

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

S&P

6 m

o. fw

s pe

rfor

man

ce

AAII Bearish Sentiment Bearish Sentiment + 2 StdDev This week's bearish readingNormal Bearish JSCO Pain Index (S&P weekly data) JSCO Pain Index 8 wk AvgS&P 6 months forward performance

Maximum bearish sentiment in 21 years

In 2002, 2004, and 2005, bearish sentiment was nearly as high as it was in March 2009; share prices 6 months later

(as indicated by the black dots), rose.

Pain Index lowest since June 2007

Source: Jonathan Smith & Co. and AAII.For education and discussion purposes only. This is neither investment advice

nor any offer or recommendation to buy or sell any security. Past performance is not a guarantee of any investment performance.