AAII Sentiment Survey: Pessimism Dips

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

Bullish sentiment, expectations that stock prices will rise over the next six months, increased 3.2 percentage points to 36.9%. Bullish sentiment is below its historical average of 37.5% for the second time in six weeks.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 0.2 percentage points to 20.5%. Neutral sentiment is unusually low and is below its historical average of 31.5% for the 66th time in 68 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, decreased 3.4 percentage points to 42.7%. Bearish sentiment is unusually high and is above its historical average of 31.0% for the 47th time in 49 weeks.

The bull-bear spread (bullish minus bearish sentiment) increased 6.6 percentage points to –5.8%. The bull-bear spread is below its historical average of 6.5% for the 35th time in 38 weeks.

This week’s special question asked AAII members if they think other investors are too bullish or too bearish right now.

Here is how they responded:

• They are too bullish: 54.5%
• Their sentiment toward the market is about right: 18.3%
• They are too bearish: 18.3%
• Not sure/no opinion: 9.0%

See more Sentiment Survey results.