AAII Sentiment Survey: Optimism and Pessimism Sentiments Rise
Neutral sentiment plunged to a six-month low in the latest AAII Sentiment Survey, as both optimism and pessimism rose.
Bullish sentiment, expectations that stock prices will rise over the next six months, rose 3.5 percentage points to 41.3%. The historical average is 39.0%.
Neutral sentiment, expectations that stock prices will stay essentially unchanged, plunged 7.0 percentage points to 25.1%. This is the lowest neutral sentiment has been since April 18, 2013. It is also just the seventh time in the past 29 weeks neutral sentiment is below its historical average of 30.5%.
Bearish sentiment, expectations that stock prices will fall over the next six months, rose 3.5 percentage points to 33.6%. This is the largest amount of pessimism registered by our survey in seven weeks. The historical average is 30.5%.
This week’s results show an increase in the amount of polarization between those who are bullish and those who are bearish…