AAII Sentiment Survey: Neutral Sentiment Dips

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

Bullish sentiment, expectations that stock prices will rise over the next six months, increased 1.8 percentage points to 39.5%. Bullish sentiment is above its historical average of 37.5% for the 51st time in 52 weeks.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, decreased 2.8 percentage points to 29.6%. Neutral sentiment is below its historical average of 31.5% for the 16th time in 17 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, increased 1.0 percentage points to 30.9%. Bearish sentiment is below its historical average of 31.0% for the 11th time in 12 weeks.

The bull-bear spread (bullish minus bearish sentiment) increased 0.8 percentage points to 8.6%. The bull-bear spread is above its historical average of 6.5% for the 25th time in 26 weeks.

This week’s special question asked AAII members which asset class they think will realize the highest returns over the next five years.

Here is how they responded:

• Stocks: 74.7%
• Precious metals: 10.1%
• Bonds: 5.1%
• Cash: 2.8%
• Other/not sure: 7.4%

See more Sentiment Survey results.