market sentiment

I'd like to start a discussion concerning market sentiment.

I think currently things seems to be cautiously optimistic, especially in Sydney's Eastern suburbs where I am. I'm starting to hearing quite a bit of 'get in early cause 2011 is the year' as opposed to 'sell sell sell' of early last year

Im wondering how much importance people place on sentiment over say fundamentals and whether current sentiment is an anchored, solid sentiment or are the jitters just under the surface?
jittery people that want a return to boom prices, but can't handle the fact that there may be a looooong period of nothingness are generally the loudest with this "2011's the year" retoric.

2011 may be "the year" - but for other reasons.

if the stimulus flow-on comes to an end at the same time as another stock market crash / terrorist attack / aliens land in NY (and NY only) then we may see another downward cycle.

my bet is for a terrorist attack later this year to stifle excessive growth through fear of investment.

time for the foil helmet to come out.....
In my neck of the woods we saw market sentiment change on 1/7/09 (I'm not kidding). It got very busy then -all though winter - and has not stopped. It did not stop for Christmas / New year either....and IR rises have seemingly had no effect on the sentiment I've seen either.
How do YOU feel about it? :cool:
I've attended only a few auctions in the suburb that I live in - too unrepresentative to indicate anything :eek: That's why I asked this question in the first place, LOL.

When I bought my 1st IP in Dec, the bank took a while to approve the loan. When I suggested to my broker to try another bank, she told me the processing time will be similar for all banks as they are facing higher workloads than usual. Not sure whether she is just trying to reassure me as this appears to contradict this recent news. Is the recent statistics a cause for concern?

A slump in demand from first home buyers has almost entirely accounted for a fall in home loan approvals in November and suggests this sector may be reacting relatively quickly to interest rate rises.

The number of loan approvals to owner-occupiers fell by 5.6 per cent in November, seasonally adjusted, after a fall of 1.9 per cent in October, the Australian Bureau of Statistics said on Tuesday.

Excluding refinancing deals, the total was down by 6.2 per cent in November, extending October's fall of 2.1 per cent.
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I think there had to be at least some slump in demand from FHOB / Owner Occupiers as the stimulus would have brought forward some purchasers.

I suppose it comes down to investors moving in now and taking the slack