LIVE MARKETS-Investor sentiment jumps, but bears still outnumber bulls
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INVESTOR SENTIMENT JUMPS, BUT BEARS STILL OUTNUMBER BULLS
Investor optimism shot skyward last week amid waning economic jitters.
The weekly survey conducted by the American Association of Individual Investors (AAII) showed that bullish sentiment - or expectations that stock prices will increase over the next six months - surged 13.6 percentage points to 41.7%, breaking above its historical average of 37.5% for the first time in seven weeks.
Even so, bearish sentiment - the belief that stock prices will turn lower over the next six months - remained north of its 31.0% historical average for the 42nd time in 44 weeks, despite shedding 7.1 ppts to 42.4%.
Neutral sentiment, which reflects the notion that stock prices will stay put in the near-term, gave up 6.5 ppts to land at an even 16.0%, its lowest level in five months and ranking among the lowest reading in the survey's history, according to AAII.
Taken together, the bull-bear spread (or, bullish minus bearish sentiment) surged 20.8 ppts to -0.7%. Still, the spread remains south of its 6.5% historical average, where it's been in 31 of the last 33 weeks.
Abating economic fears probably helped fuel this jolt of optimism.
This week, AAII asked survey participants to set odds on the likelihood of the U.S. economy entering a recession before year-end.
"Unlikely" got the strongest response at 39.6%, while "higher-than-typical" and "no more likely than normal" both got 26.9% of the votes. "Highly likely" and "not sure" picked up the rear, coming in at 4.2% and 2.3%, respectively.
(Stephen Culp)
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Wall Street indexes rise modestly https://fingfx.thomsonreuters.com/gfx/mkt/jnvwboxybpw/Pasted%20image%201758291308404.png
AAII investor sentiment 
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