AAII Sentiment Survey: Pessimism Reverses

by AAII Staff | September 04, 2025

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

Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 1.9 percentage points to 32.7%. Bullish sentiment is below its historical average of 37.5% for the sixth time in 10 weeks.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, decreased 2.0 percentage points to 23.9%. Neutral sentiment is below its historical average of 31.5% for the 59th time in 61 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, increased 3.9 percentage points to 43.4%. Bearish sentiment is unusually high and is above its historical average of 31.0% for the 40th time in 42 weeks.

The bull-bear spread (bullish minus bearish sentiment) decreased 5.8 percentage points to –10.7%. The bull-bear spread is below its historical average of 6.5% for the 29th time in 31 weeks.

This week’s special question asked AAII members how they would describe the current state of the economy.

Here is how they responded:

  • Great: 4.0%
  • Good: 34.9%
  • Mixed: 54.7%
  • Lousy: 5.7%
  • Not sure/no opinion: 0.7%


This week’s Sentiment Survey results:

Bullish: 32.7%, down 1.9 points
Neutral: 23.9%, down 2.0 points
Bearish: 43.4%, up 3.9 points

Historical averages:

Bullish: 37.5%
Neutral: 31.5%
Bearish: 31.0%

See more Sentiment Survey results.




Discussion

JOHN S from MA posted about 1 year ago:

Tariff pain has been an anchor for a lot of atocks. Trump’s continuing vacillation on tariff rates and deals confuses things (probably his intent that he will paint as a brilliant strategy) but continues to earn him the TACO nickname.


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