AAII Sentiment Survey: Neutral Sentiment Remains Stubbornly High

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Investor optimism and pessimism continue to fall while neutral sentiment remains very high.

Bullish sentiment, expectations that stock prices will rise over the next six months, dropped for the second straight week, falling 1.4 percentage points to 28.3 percent. After sharply rebounding two weeks ago, optimism is now substantially below its long-term average of 39 percent.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, rose 2.2 percentage points to 43 percent. Neutral sentiment has now been increasing for four straight weeks. It is also the 18th consecutive week that neutral sentiment is above its historical average of 30.5 percent.

Bearish sentiment, expectations that stock prices will fall over the next six months, fell 0.8 percentage points to 28.7 percent. This puts pessimism below its historical average of 30.5 percent for the third straight week.

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AAII Sentiment Survey: Neutral Sentiment Remains Stubbornly High