AAII Sentiment Survey: Neutral Sentiment Rises

Bullish sentiment increased but is below average for the third consecutive week in the latest AAII Sentiment Survey. Neutral sentiment is above average for the third consecutive week. Bearish sentiment is above average for the second consecutive week.

Bullish sentiment, expectations that stock prices will rise over the next six months, increased 0.8 percentage points to 33.1%. Optimism is below its historical average of 37.5% for the third consecutive week.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, increased 0.6 percentage points to 32.4%. Neutral sentiment is above its historical average of 31.5% for the fifth time in 13 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, decreased 1.4 percentage points to 34.5%. Bearish sentiment is above its historical average of 31.0% for the second consecutive week and the second time in 13 weeks.

The bull-bear spread (bullish minus bearish sentiment) increased 2.2 percentage points to –1.4%. This is the third time in 13 weeks that the bull-bear spread is below its historical average of 6.5%.

This week’s special question asked AAII members which security they use the most to generate interest income. Here are the responses:

• Savings accounts/CDs/money market accounts and funds: 45.4%
• Treasurys: 25.0%
• Investment-grade corporate bonds: 4.9%
• High-yield corporate bonds: 4.9%
• Other/not sure: 15.8%

See more Sentiment Survey results.