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INDIVIDUAL INVESTORS EXPRESS CONCERNS OVER VALUATIONS - AAII
Optimism among individual investors over the short-term outlook for U.S. stocks rebounded in the latest American Association of Individual Investors (AAII) Sentiment Survey. Both pessimism and neutral sentiment declined.
At the same time, nearly half of investors surveyed said that they think "stocks, in general, are overvalued."
AAII reported that bullish sentiment, or expectations that stock prices will rise over the next six months, rose 3.6 percentage points to 40.3%. Bullish sentiment is above its historical average of 37.5% for the fourth time in 10 weeks.
Bearish sentiment, or expectations that stock prices will fall over the next six months, edged down 1.0 percentage points to 33.0%. Bearish sentiment is above its historical average of 31.0% for the 35th time in 37 weeks.
Neutral sentiment, or expectations that stock prices will stay essentially unchanged over the next six months, slipped 2.5 percentage points to 26.7%. Neutral sentiment is below its historical average of 31.5% for the 54th time in 56 weeks.
With these changes, the bull-bear spread added 4.6 percentage points to 7.3% from 2.7% last week. The bull-bear spread is above its historical average of 6.5% for the second time in 26 weeks.
In this week's special question AAII asked its members for their assessment of the current valuation of stocks.
Here is AAII's graphic showing how they responded:
(Terence Gabriel)
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