AAII Sentiment Survey: Optimism Falls

Optimism among individual investors about the short-term outlook for stocks significantly decreased in the latest AAII Sentiment Survey. Meanwhile, neutral sentiment and pessimism rose.

Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 8.0 percentage points to 39.0%. Bullish sentiment is above its historical average of 37.5% for the 29th time in 30 weeks. 

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 7.6 percentage points to 34.2%. Neutral sentiment is above its historical average of 31.5% for the fifth time in 11 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, increased 0.4 percentage points to 26.7%. Bearish sentiment is below its historical average of 31.0% for the fourth time in seven weeks.

The bull-bear spread (bullish minus bearish sentiment) decreased 8.4 percentage points to 12.3%. The bull-bear spread is above its historical average of 6.5% for the fourth time in seven weeks.

This week’s special question asked AAII members how they think the meme stock comeback will affect investors’ asset allocation decisions.

Here is how they responded:

• It will influence investors to prefer stocks and assets that are risky: 13.8%
• It will have no influence on investors’ asset allocation decisions: 56.1%
• It will influence investors to prefer less risky stocks and assets: 8.4%
• No opinion: 20.9%

See more Sentiment Survey results.