AAII Sentiment Survey June 5: Neutral Sentiment Increases
Neutral sentiment among individual investors about the short-term outlook for stocks increased in the latest AAII Sentiment Survey. Meanwhile, optimism and pessimism decreased.
Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 0.2 percentage points to 32.7%. Bullish sentiment is below its historical average of 37.5% for the 17th time in 18 weeks and is above 30% for only the ninth time this year.
Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 0.7 percentage points to 25.9%. Neutral sentiment is below its historical average of 31.5% for the 46th time in 48 weeks.
Bearish sentiment, expectations that stock prices will fall over the next six months, decreased 0.4 percentage points to 41.4%. Bearish sentiment is unusually high and is above its historical average of 31.0% for the 27th time in 29 weeks.
The bull-bear spread (bullish minus bearish sentiment) increased 0.2 percentage points to –8.8%. The bull-bear spread is below its historical average of 6.5% for the 18th time in 20 weeks.
This week’s special question asked AAII members how they would describe the current state of the economy.
Here is how they responded:
Great: 3.2%
Good: 28.2%
Mixed: 57.9%
Lousy: 9.6%
Not sure/no opinion: 0.7%
This week’s Sentiment Survey results:
Bullish: 32.7%, down 0.2 points
Neutral: 25.9%, up 0.7 points
Bearish: 41.4%, down 0.4 points
Historical averages:
Bullish: 37.5%
Neutral: 31.5%
Bearish: 31.0%