AAII Sentiment Survey: Optimism Continues Its Descent

by AAII Staff | October 26, 2023

Optimism among individual investors about the short-term outlook for stocks continued its decline in the latest AAII Sentiment Survey. Meanwhile, pessimism increased.

Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 4.8 percentage points to 29.3%. Optimism is below its historical average of 37.5% for the sixth time in seven weeks.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, fell 3.8 percentage points to 27.5%. Neutral sentiment is below its historical average of 31.5% for the fifth time in eight weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, increased 8.6 percentage points to 43.2%. Pessimism is now at an unusually high level and is above its historical average of 31.0% for the sixth time in eight weeks.

The bull-bear spread (bullish minus bearish sentiment) decreased 4.8 percentage points to –5.3%. The bull-bear spread remains below its historical average of 6.4% for the seventh time in eight weeks.

This week’s special question asked AAII members which of the following they think is the best long-term investment:

  • Stocks: 72.8%
  • Cash (Savings Accounts, Money Market Funds, etc.): 11.6%
  • Privately Held Real Estate: 8.4%
  • Commodities (Including Gold): 4.3%
  • Bonds: 2.9%


This week’s Sentiment Survey results:

Bullish: 29.3%, down 4.8 points
Neutral: 27.5%, down 3.8 points
Bearish: 43.2%, up 8.6 points

Historical averages:

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

See more Sentiment Survey results.




Discussion

KEVIN S from CA posted over 2 years ago:

Time for the magic Mike mega caps to crash. Can not wait. AI manure is tiresome.


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