For the eighth consecutive week the percentage of bullish investors remains below the historical "danger zone" of 50%. Bearish investors remain low but not abnormally so.
According to this week's American Association of Individual Investors (AAII) survey, 39% of respondents were bullish on the stock market's interim outlook while 33% were bearish. This compares to last week's response of 45% bulls against 32% bears.
I would characterize the latest AAII sentiment poll as being relatively benign. Although the bears aren't numerous, neither are the bulls numerous considering the major indices are hovering near all-time highs. I can't remember the last time such elevated equity price levels elicited such a muted response among retail investors, can you? From a contrarian standpoint this is considered supportive of the interim upward trend for stocks.
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