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INDIVIDUAL INVESTOR BULLS AND BEARS CONVERGING - AAII
Pessimism among individual investors over the short-term outlook for U.S. stocks rose in the latest American Association of Individual Investors (AAII) Sentiment Survey. With this, optimism dipped, while neutral sentiment ticked up.
AAII reported that bearish sentiment, or expectations that stock prices will fall over the next six months, added 2.7 percentage points to 34.1%. Pessimism is above its historical average of 31.0% for the fifth time in six weeks.
Bullish sentiment, or expectations that stock prices will rise over the next six months, decreased 2.9 percentage points to 37.8%. Optimism is above its historical average of 37.5% for the 58th time in 60 weeks.
Neutral sentiment, or expectations that stock prices will stay essentially unchanged over the next six months, added one tenth of a percentage point to 28.0% (highest since 30.9% on November 7). Neutral sentiment is below its historical average of 31.5% for the 24th time in 25 weeks.
With these changes, the bull-bear spread narrowed 5.6 percentage points to 3.7% from 9.3% last week. The bull-bear spread is below its historical average of 6.5% for just the third time in 34 weeks.
(Terence Gabriel)
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