AAII Sentiment Survey: Neutral Sentiment Rises Above 20%

The percentage of individual investors describing their six-month outlook for stocks as “neutral” is above 20% for the first time since early March. The latest AAII Sentiment Survey also shows a continued decline in pessimism and a pullback in optimism.

Bullish sentiment, expectations that stock prices will rise over the next six months, fell 1.7 percentage points to 34.9%. Optimism is below its historical average of 38.0% for the sixth consecutive week and the 11th week this year.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, rose 3.7 percentage points to 22.4%. Neutral sentiment was last above 20% on March 4, 2020 (21.6%), and last higher on February 26, 2020 (30.4%). Neutral sentiment remains below its historical average of 31.5% for the 13th time in 14 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, pulled back by 1.9 percentage points to 42.7%. Pessimism remains above its historical average of 30.5% for the eighth consecutive week.

Even though neutral sentiment has now risen for four consecutive weeks, it still remains at an unusually low level. Pessimism, on the other hand, continues to be at an unusually high level.

This week’s AAII Sentiment Survey:

• Bullish: 34.9%, down 1.7 percentage points
• Neutral: 22.4%, up 3.7 percentage points
• Bearish: 42.7%, down 1.9 percentage points

Historical averages:

• Bullish: 38.0%
• Neutral: 31.5%
• 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.