After the recent strength in equities, investors sure are getting confident. According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment increased for the second straight week rising by 7.02 percentage points to 47.02%. That makes this week’s reading the highest level of bullish sentiment since January 1st (51.74%).
As one might expect given the increase in bullish sentiment, bearish sentiment declined this week, falling from 20.33% down to 17.88%. What is notable about this decline is that there have only been five other weeks during this entire bull market that bearish sentiment was lower than it is now. The lowest level of bearish sentiment for the entire bull market was 15.05% back in November 2014.