AAII pessimism rises as investors turn more cautious
SPY•In the latest AAII survey, bearish sentiment rose 2.6 percentage points to 41.6%, while bullish sentiment slipped 1.5 points to 38.7%. The bull-bear spread fell to minus 2.9%, and only about 5% of respondents said they had recently become more aggressive.
1. Bearish sentiment increases
Individual investors turned more cautious in the latest American Association of Individual Investors Sentiment Survey, with pessimism rising as neutral views and optimism edged lower. Bearish sentiment increased 2.6 percentage points to 41.6%, its 36th consecutive week above its historical average of 31.5%.
2. Bullish views edge lower
Neutral sentiment fell 1.1 percentage points to 19.7%, remaining below its 31.0% historical average for 32 consecutive weeks. Bullish sentiment slipped 1.5 points to 38.7%, still above its 37.5% historical average.
3. Risk appetite remains limited
The bull-bear spread fell to minus 2.9% from positive 1.3% a week earlier and has spent 13 consecutive weeks below its 6.5% historical average. In a special question, AAII asked members how they had recently changed their approach to investing; about 5% said they had become more aggressive.
