LIVE MARKETS-Individual investor bulls and bears just did this for the first time - AAII

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INDIVIDUAL INVESTOR BULLS AND BEARS JUST DID THIS FOR THE FIRST TIME - AAII

Individual investor optimism over the short-term outlook for U.S. stocks languished, while pessimism remained elevated, in the latest American Association of Individual Investors (AAII) Sentiment Survey. With this, neutral sentiment slipped.

Additionally, somewhat more investors surveyed believe that other investors are "too bearish" rather than they are "too bullish."

AAII reported that bullish sentiment, or expectations that stock prices will rise over the next six months, edged down 0.2 percentage points to 19.1%. Bullish sentiment is "unusually low" and is below its historical average of 37.5% for the ninth time in 11 weeks.

Bullish sentiment was last lower on September 22, 2022 (17.7%). (The S&P 500's .SPX put in the low close of its 2022 bear market on October 12, 2022). AAII noted that this is "the first time that bullish sentiment has been below 20% for three straight weeks."

Bearish sentiment, or expectations that stock prices will fall over the next six months, added 2.1 percentage points to 59.2%. Bearish sentiment is "unusually high" and is above its historical average of 31.0% for the 15th time in 17 weeks.

AAII noted that this is "the first time in the history of the survey that bearish sentiment has exceeded 57% for three consecutive weeks."

Neutral sentiment, or expectations that stock prices will stay essentially unchanged over the next six months, edged down 1.9 percentage points to 21.7%. Neutral sentiment is unusually low and is below its historical average of 31.5% for the 34th time in 36 weeks.

With these changes, the bull-bear spread dipped 2.3 percentage points to –40.1% from around -37.8% last week. The bull-bear spread is below its historical average of 6.5% for the 10th time in 12 weeks.

In this week's special question AAII asked its members if they think other investors are too bullish or bearish right now.

Here is AAII's graphic showing how they responded:

Meanwhile, this week's milestones for AAII bulls and bears are occurring the same week that Investors Intelligence (II) reported some eye popping investment advisor sentiment readings - Click Here.

(Terence Gabriel)

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