Below is an updated look at the weekly AAII (American Association of Individual Investors) bullish and bearish sentiment readings. These readings measure US stock market sentiment from individual investors. This week, AAII Bullish Sentiment came in at 28.6%, down 0.82 points from last week’s reading of 29.42%. At the same time, AAII Bearish Sentiment jumped to 31.52%, up 1.88 points from last week’s reading of 29.64%. Neither reading had an extreme move, and neither is at the top or bottom end of its two-year range. Nonetheless, sentiment towards stocks from individual investors right now is far from optimistic.
It’s also worth pointing out that this was the 44th consecutive week that AAII Bullish Sentiment was below 40%. As shown below, this is the longest streak of sub-40% weekly readings since 1987. Hard to believe given the rally to new all-time highs we’ve seen over the last few months.