Investors grow less bearish, but skepticism remains high — AAII
SPY•AAII’s weekly survey found bearish sentiment fell 5.2 percentage points to 48.1%, while bullish sentiment rose to 32.7%. Eighty percent of respondents said the Federal Reserve made the right call in raising rates by 25 basis points.
1. Bearish sentiment eases
The share of individual investors expecting stocks to fall over the next six months dropped 5.2 percentage points to 48.1%, though it remained above its 31.5% long-term average for a 33rd consecutive week. Bullish sentiment rose 3.9 points to 32.7%, and neutral sentiment increased 1.3 points to 19.2%. The bull-bear spread improved to negative 15.4% from negative 24.5% a week earlier, but remained below its 6.5% historical average.
2. Investors back Fed move
In AAII’s weekly special question, 80% of investors said the Federal Reserve made the right call by raising interest rates 25 basis points at the previous week’s FOMC meeting. Bullish sentiment remained below its 37.5% historical norm, while neutral sentiment was below its 31.0% long-term average.
