Pessimism Jumps in This Week’s Sentiment Survey
Optimism pulls back slightly as pessimism jumps in this week’s Sentiment Survey.
Bullish sentiment, expectations that stock prices will rise over the next six months, pulled back slightly after a spike last week. Bullish sentiment dropped 0.4 percentage points and is now at 45.1 percent. This is the second time in six weeks that bullish sentiment is above its historical average of 39.0 percent.
Neutral sentiment, expectations that stock prices will stay essentially unchanged, declined another 4.7 percentage points after dropping 3.3 percentage points last week. Neutral sentiment now sits at 25.2 percent marking the third time in five weeks that neutral sentiment is below its historical average of 30.5 percent.
Bearish sentiment, expectations that stock prices will fall over the next six months, jumped 5.1 percentage points up to 29.7 percent. The jump in pessimism follows a large drop last week. The historical average is 30.5 percent.
The swings in sentiment come as no surprise with all the uncertainty in the market.