AAII Sentiment Survey: Neutral Sentiment Leaps
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 4.0 percentage points to 34.5%. Bullish sentiment is below its historical average of 37.5% for the first time in 12 weeks.
Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 5.2 percentage points to 28.5%. Neutral sentiment is below its historical average of 31.5% for the 83rd time in 85 weeks.
Bearish sentiment, expectations that stock prices will fall over the next six months, decreased 1.2 percentage points to 36.9%. Bearish sentiment is above its historical average of 31.0% for the fifth time in 12 weeks.
The bull-bear spread (bullish minus bearish sentiment) decreased 2.8 percentage points to –2.4%. The bull-bear spread is below its historical average of 6.5% for the second time in 12 weeks.
This week’s special question asked AAII members how they prefer companies to return cash to shareholders.
Here is how they responded:
I like companies that use both dividends and buybacks: 40.8%
I prefer dividends for the regular income stream: 37.2%
I prefer stock buybacks for tax efficiency: 12.4%
Not sure/no opinion: 8.7%
This week’s Sentiment Survey results:
Bullish: 34.5%, down 4.0 points
Neutral: 28.5%, up 5.2 points
Bearish: 36.9%, down 1.2 points
Historical averages:
Bullish: 37.5%
Neutral: 31.5%
Bearish: 31.0%
See more Sentiment Survey results.
