AAII Sentiment Survey: Optimism Up for 4th Consecutive Week

Optimism among individual investors about the short-term direction of the stock market increased for the fourth consecutive week. The latest AAII Sentiment Survey also shows a small increase in pessimism and a decline in neutral sentiment.

Bullish sentiment, expectations that stock prices will rise over the next six months, rose 2.3 percentage points to 35.9%. This is a 10-week high. Nonetheless, bullish sentiment remains below its historical average of 38.5% for the 10th consecutive week and the 22nd time this year.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, pulled back by 3.5 percentage points to 35.4%. Even with the decline, neutral sentiment is above its historical average of 31.0% for the 24th time in 25 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, rebounded by 1.1 percentage points to 28.6%. Pessimism was last lower on May 8, 2019 (23.2%). The historical average is 30.5%.

All three indicators are currently within their typical ranges.

This week’s AAII Sentiment Survey results:

• Bullish: 35.9%, up 2.3 percentage points
• Neutral: 35.4%, down 3.5 percentage points
• Bearish: 28.6%, up 1.1 percentage points

Historical averages:

• Bullish: 38.5%
• Neutral: 31.0%
• Bearish: 30.5%

Want to weigh in? Take the survey yourself and see results online at www.aaii.com/sentimentsurvey.

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See more Sentiment Survey results.