Optimism and neutral sentiment among individual investors fell slightly from last week, while pessimism increased according to the latest AAII Sentiment Survey.
Bullish sentiment, expectations that stock prices will rise over the next six months, declined 1.3 percentage points to 42.2%. The historical average is 38.5%.
Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, declined 0.6 percentage points to 31.5%. Neutral sentiment remains above its historical average of 31.0%, but only slightly.
Bearish sentiment, expectations that stock prices will fall over the next six months, rose 1.9 percentage points to 26.3%. The historical average is 30.5%.
The recent rebound in optimism is occurring as the major U.S. stock indexes are setting record highs. Nevertheless, tariffs and the possibility of an escalating trade war remain front and center on the minds of many individual investors. Also influencing sentiment are Washington politics (including President Donald Trump), economic growth, interest rates (including monetary policy), valuations and corporate profits.
This week’s AAII Sentiment Survey results:
- Bullish 42.2%, down 1.3 percentage points
- Neutral: 31.5%, down 0.6 percentage points
- Bearish: 26.3%, up 1.9 percentage points
- Bullish: 38.5%
- Neutral: 31.0%
- Bearish: 30.5%
Want to weigh in? Take the survey yourself and see results online at www.aaii.com/sentimentsurvey.
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