Pessimism eases, but AAII investors remain wary
SPY•Bearish sentiment among individual investors fell 4.4 percentage points to 41.4% in the latest AAII survey, while bullish sentiment rose 1 point to 37.8%. The bull-bear spread improved to negative 3.6% but remained below its long-term average.
1. Sentiment improves modestly
Bearish sentiment fell 4.4 percentage points to 41.4%, remaining above its long-term average of 31.5% for the 38th straight week. Bullish sentiment rose 1 point to 37.8%, slightly above its 37.5% long-term average, while neutral sentiment gained 3.4 points to 20.7%.
2. Small caps least favored
The bull-bear spread improved to negative 3.6% from negative 8.9% a week earlier, but stayed below its historical average of 6.5% for a 15th consecutive week. In the survey’s special question, just 4% of respondents favored small-cap stocks, the least popular choice.
