Bullish Sentiment of Newsletter Writers & Retail Investors at Rare Divergence

This week, Rocky White of Schaeffer’s Investment Research wrote an article discussing the divergence in bullish sentiment among investment newsletter writers and retail investors. Specifically, he looked at AAII’s Investor Sentiment Survey and the weekly Investors Intelligence (II) sentiment poll and how bullish sentiment between the two indicates very different expectations. But first, some background….

 

AAII Readers Look Past Social Media as a Research Tool

For do-it-yourself investors, investment analysis may include combing over earnings releases, quarterly and annual reports and analyst research. However, forming our opinions of a security is only half the battle; the other half is understanding the market’s perception of the security–and how that perception manifests itself in the security’s price. While many of us are…