AAII Sentiment Survey: Bullish Remains Above Historical Average

The results from the latest AAII Sentiment Survey saw bullish sentiment continue its trend from last week, rising further above its historical average. In addition, the number of investors that described their outlook for stocks as “bearish” decreased.

Bullish sentiment, expectations that stock prices will rise over the next six months, rose 1.7 percentage points to 41.5%. This is the third consecutive week out of the last eight weeks that bullish sentiment is above the historical average of 38.0%.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, grew by 1.8 percentage points to 32.5%. This is the second time in five weeks that neutral sentiment is above the historical average of 31.5%.

Bearish sentiment, expectations that stock prices will fall over the next six months, decreased by 3.4 percentage points to 26.0%. This week marks the third consecutive week that bearish sentiment is below the historical average of 30.5%.

The return to normalcy from the coronavirus pandemic, monetary and fiscal stimulus and inflationary pressures are influencing individual investors’ outlook for stocks. Other factors include earnings, valuations and the Biden administration’s initiatives.

See more Sentiment Survey results.