AAII Sentiment Survey: Neutral Sentiment Increases

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

Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 0.1 percentage points to 19.3%. Bullish sentiment is unusually low and is below its historical average of 37.5% for the eighth time in 10 weeks. Bullish sentiment was last lower on March 16, 2023, (19.2%) and was among the lowest 66 readings in the survey’s history.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 3.6 percentage points to 23.6%. Neutral sentiment is below its historical average of 31.5% for the 33rd time in 35 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, decreased 3.5 percentage points to 57.1%. Bearish sentiment is unusually high and is above its historical average of 31.0% for the 14th time in 16 weeks.

The bull-bear spread (bullish minus bearish sentiment) increased 3.5 percentage points to –37.8%. The bull-bear spread is below its historical average of 6.5% for the ninth time in 11 weeks. 

This week’s special question asked AAII members how, if at all, they changed their approach to investing recently.

Here is how they responded:

• I’ve become much more conservative/cautious: 28.9%
• I’ve become slightly more conservative: 26.9%
• I’ve switched around some investments, but only made modest changes overall: 19.4%
• I’ve become more aggressive: 4.9%
• No changes: 20.0%

See more Sentiment Survey results.