LIVE MARKETS-Optimism gains while pessimism takes a dip: AAII

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OPTIMISM GAINS WHILE PESSIMISM TAKES A DIP: AAII

Optimism among individual investors about the short-term prospects for stocks increased while neutral sentiment and pessimism decreased in the latest AAII Sentiment Survey from the American Association of Individual Investors.

Bullish sentiment, defined as expectations stock prices will rise in the next six months, increased 7.2 percentage points to 44.0%. Bullish sentiment is above its historical average of 37.5% for the fifth time in seven weeks, according to the survey.

Neutral sentiment, or expectations stock prices will stay essentially unchanged over the next six months, fell 1.4 percentage points to 19.1%. And neutral sentiment is unusually low, being below its historical average of 31.5% for the 67th time in 69 weeks.

Bearish sentiment, or expectations stock prices will fall over the next six months, dropped 5.8 percentage points to 36.9%. However, bearish sentiment is above its historical average of 31.0% for the 48th time in 50 weeks.

The bull-bear spread, which refers to bullish minus bearish sentiment, rose 13.0 percentage points to 7.2%. And the bull-bear spread is above its historical average of 6.5% for the fourth time in 39 weeks.

In this week’s special question, AAII asked its members what they will be giving out to kids this Halloween.

Here is how they responded:

44.4% said they don't get kids stopping by

29.7% give out a mix of chocolate and other types of candy

13.4% said candy

8.6% said chocolate

3.5% said something else

But while kids and AAII are showing an interest in candy this week, investors in Hershey Co HSY.N are just not in the mood, sending the stock down 1.9 % on the day and eying their fourth straight day of declines. Notably, data from investment bank Jeffries and Datasembly shows U.S. retailers are discounting some Hershey candy ahead of Halloween on Friday, the confectioner's biggest holiday, after it hiked prices this summer due to cocoa inflation.

(Sinéad Carew)

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