AAII Sentiment Survey: Pessimism Rises

Pessimism among individual investors about the short-term outlook for stocks increased in the latest AAII Sentiment Survey. Meanwhile, both optimism and neutral sentiment decreased.

Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 0.1 percentage points to 39.0%. Bullish sentiment is above its historical average of 37.5% for the 30th time in 31 weeks.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, decreased 5.2 percentage points to 29.0%. Neutral sentiment is below its historical average of 31.5% for the seventh time in 12 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, increased 5.3 percentage points to 32.0%. Bearish sentiment is above its historical average of 31.0% for the fourth time in eight weeks.

The bull-bear spread (bullish minus bearish sentiment) decreased 5.3 percentage points to 7.0%. The bull-bear spread is above its historical average of 6.5% for the fifth time in eight weeks.

This week’s special question asked AAII members which of the following they are using the most to generate interest income.

Here is how they responded:

• Savings accounts/certificates of deposit (CDs)/money market accounts and funds: 52.9%
• U.S. Treasurys: 16.2%
• Investment-grade corporate bonds: 7.3%
• High-yield corporate bonds: 6.8%
• Other/not sure: 13.6%

See more Sentiment Survey results.