Sentiment on the part of individual investors saw an ever so slight improvement in the last week, but still remains well below its historical averages. According to the American Association of Individual Investors (AAII), bullish sentiment increased from 27.0% up to 27.34%. This represents the 13th straight week where bullish sentiment has come in below its bull market average of 38.5%. That is the longest streak of below average bullish sentiment since August 2012 when bullish sentiment was below average for 20 consecutive weeks. It’s purely coincidental but also ironic that at the same time that bullish sentiment has been below average for 13 weeks in a row, jobless claims have come in below 300K for 13 straight weeks! Can investors be any more picky?
Once again this week, neutral is where a plurality of investors are at. In this week’s survey, neutral sentiment actually increased to 48.03% from 47.9% last week. That’s now a record nine straight weeks where neutrals have been above 45%. Prior to the current streak, the next longest streak of 45%+ readings was in 1988.