AAII Sentiment Survey: Neutral Sentiment Rises

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

Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 0.2 percentage points to 44.4%. Bullish sentiment is above its historical average of 37.5% for the 32nd time in 33 weeks.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 3.4 percentage points to 33.1%. Neutral sentiment is above its historical average of 31.5% for the sixth time in 14 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, decreased 3.2 percentage points to 22.5%. Bearish sentiment is below its historical average of 31.0% for the sixth time in 10 weeks.

The bull-bear spread (bullish minus bearish sentiment) increased 2.9 percentage points to 21.9%. The bull-bear spread is above its historical average of 6.5% for the seventh consecutive week.

This week’s special question asked AAII members what they thought about the Federal Reserve’s decision to keep interest rates unchanged.

Here is how they responded:

• It was the right decision: 73.2%
• They should have raised rates: 9.9%
• They should have cut rates: 9.9%
• Not sure/no opinion: 6.7%

See more Sentiment Survey results.