AAII Sentiment Survey: Optimism Pulls Back

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

Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 5.0 percentage points to 43.3%. Optimism is above its historical average of 37.5% for the 56th time in 58 weeks.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 4.0 percentage points to 25.0%. Neutral sentiment is below its historical average of 31.5% for the 22nd time in 23 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, increased 1.0 percentage points to 31.7%. Pessimism is above its historical average of 31.0% for the third time in four weeks.

The bull-bear spread (bullish minus bearish sentiment) decreased 6.0 percentage points to 11.7%. The bull-bear spread is above its historical average of 6.5% for the 30th time in 32 weeks.

This week’s special question asked AAII members how they think the average consumer is faring relative to one year ago.

Here’s how they responded:

• Better: 31.3%
• About the same: 35.1%
• Worse: 32.1%
• Not sure/no opinion: 1.5%

See more Sentiment Survey results.