AAII Sentiment Survey: Neutral Sentiment Rebounds
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 2.3 percentage points to 34.7%. Bullish sentiment is below its historical average of 37.5% for the fourth consecutive week.
Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 2.4 percentage points to 27.4%. Neutral sentiment is below its historical average of 31.0% for the 23rd consecutive week.
Bearish sentiment, expectations that stock prices will fall over the next six months, decreased 0.1 percentage points to 37.9%. Bearish sentiment is above its historical average of 31.5% for the 27th consecutive week.
The bull-bear spread (bullish minus bearish sentiment) decreased 2.3 percentage points to –3.2%. The bull-bear spread is below its historical average of 6.5% for the fourth consecutive week.
This week’s special question asked AAII members whether they think other investors are too bullish or too bearish right now.
Here is how they responded:
They are too bullish: 47.6%
Their sentiment toward the market is about right: 22.7%
They are too bearish: 19.5%
Not sure/no opinion: 10.3%
This week’s Sentiment Survey results:
Bullish: 34.7%, down 2.3 points
Neutral: 27.4%, up 2.4 points
Bearish: 37.9%, down 0.1 points
Historical averages:
Bullish: 37.5%
Neutral: 31.0%
Bearish: 31.5%