AAII bears tighten their grip
SPY•Bearish sentiment among individual investors rose 3.0 percentage points to 51.4%, while bullish sentiment fell to 30.8%, according to the latest AAII survey. U.S. stocks were lower, with the Nasdaq down about 1.5% and the S&P 500 down about 0.9%.
1. Investor sentiment sours
In the latest American Association of Individual Investors survey, bullish sentiment fell 3.3 percentage points to 30.8%, below its 37.5% long-term average for the third time in four weeks. Bearish sentiment rose 3.0 points to 51.4%, exceeding its 31.5% long-term average for the 40th consecutive week. The bull-bear spread widened to negative 20.6%, its most negative reading since mid-September.
2. Portfolios largely unchanged
Nearly three-quarters of respondents said they do not currently plan to make significant portfolio changes in response to the midterm elections. In markets, the Nasdaq fell about 1.5%, the S&P 500 lost about 0.9%, and the Dow was modestly lower.
