LIVE MARKETS-Individual Investor bears lowest since October 2024  - AAII

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INDIVIDUAL INVESTOR BEARS LOWEST SINCE OCTOBER 2024 - AAII

Pessimism among individual investors over the short-term outlook for U.S. stocks declined in the latest American Association of Individual Investors (AAII) Sentiment Survey. With this, both optimism and neutral sentiment increased.

AAII reported that bearish sentiment, or expectations that stock prices will fall over the next six months, fell 7.8 percentage points to 27.0% (lowest since 25.4% on October 17, 2024). Bearish sentiment is below its historical average of 31.0% for the third time in 49 weeks.

Bullish sentiment, or expectations that stock prices will rise over the next six months, gained 4.6 percentage points to 42.0%. Bullish sentiment is above its historical average of 37.5% for the fourth time in eight weeks.

Neutral sentiment, or expectations that stock prices will stay essentially unchanged over the next six months, added 3.2 percentage points to 31.0%. Neutral sentiment is below its historical average of 31.5% for the 76th time in 78 weeks.

With these changes, the bull-bear spread jumped 12.4 percentage points to 15.0% from 2.6% last week. This is the widest positive spread since a 17.7% reading on December 5, 2024. The bull-bear spread is now above its historical average of 6.5% for the eighth time in 48 weeks.

(Terence Gabriel)

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