AAII Sentiment Survey: Optimism at New 2017 Low; Neutral at New High

Optimism among individual investors about the short-term direction of stock prices fell to a new 2017 low in the latest AAII Sentiment Survey. At the same time, the percentage of individual investors describing their outlook as “neutral” is at a new high for the year. Bullish sentiment, expectations that stock prices will rise over the…

 

Which Factors Are Most Important When Selecting Individual Stocks?

Factor investing came to the forefront in 1992 with Eugene Fama and Kenneth French’s paper “The Cross-Section of Expected Stock Returns.” A factor is a characteristic or set of characteristics common to a broad set of securities that both explains performance and provides a premium or above-market return. Factors deliver above-market returns because investors demand…

 

March AAII Journal Update

The March 2017 AAII Journal is Now Available Online.   Feature Article: The Top Mutual Funds Over Five Years: Health Care’s Dominance Is Weakening Four of the 10-best performing funds are from the health care category, but this number is down from seven last year. In This Issue: Mutual Funds » Tracking the S&P 500…

 

AAII Sentiment Survey: Neutral Sentiment Rises to Highest Level Since Early November

The percentage of individual investors describing their short-term market outlook as “neutral” decreased from last week, while pessimism has now been above 30% for three consecutive weeks for the first time since the election, according to the latest AAII Sentiment Survey. Optimism bounced back slightly after declining three weeks in a row. Bullish sentiment, expectations…

 

AAII Sentiment Survey: Optimism Pulls Back Following Big Rise

Optimism pulled back in the latest AAII Sentiment Survey after having risen significantly over the previous three weeks. Both neutral and bearish sentiment rebounded this week, after having both previously fallen. Bullish sentiment, expectations that stock prices will rise over the next six months, fell by 6.1 percentage points to 43.8%. The pullback follows last…

 

AAII Sentiment Survey: Optimism Below 30% for 10th Week

Optimism among individual investors about the short-term direction of stock prices is below 30% for the 10th consecutive week in the latest AAII Sentiment Survey. Neutral sentiment rebounded, while pessimism pulled back. Bullish sentiment, expectations that stock prices will rise over the next six months, rebounded by 1.0 percentage points to 24.8%. Optimism is below…

 

Majority of Investors Worry About Divergence Between Corporate Earnings & Market Levels

According to FactSet, as of the market close on August 25, over 98% of companies in the S&P 500 have reported earnings for the second calendar quarter earnings season. Of those, 71% have reported positive earnings surprises–actual earnings were above the mean estimate. For the second quarter, the blended earnings decline–reported earnings decline as well…

 

Opinions Mixed on Record Market Highs

This week’s Sentiment Survey special question asked AAII members what they thought about the S&P 500 rising to new record highs. Responses varied, as did the reasons given for those responses. About one out of three respondents (34%) either think the recent rally will not last or are concerned about its short-term sustainability. There was…