Investor sentiment for the latest week was released earlier today, and according to AAII, bullish sentiment increased from 27.9% up to 33.4%. After a huge rally off the February lows that has taken the S&P 500 back within a couple of percentage points from its all-time high, the best we can do is a third of investors in the bullish camp?
The subdued level of enthusiasm on the part of investors is a trend that has been in place for well over a year now, and one we have thoroughly documented. In fact, this week’s 33.4% reading in bullish sentiment represents the 25th straight week where bullish sentiment was below 40%, and outside of one week in late October, bullish sentiment has been below 40% for 59 of the last 60 weeks. The chart below shows historical streaks where AAII bullish sentiment was below 40%. As shown, the current run of 25 weeks is only the fifth streak that has lasted 25 weeks or longer going back to 1987. Furthermore, the current streak was preceded by a streak of 34 weeks below 40%, and that was the longest in the history of the survey.
Last week we published a Chart of the Day for paid subscribers titled “A Lost Generation of Investors” that has additional thoughts on depressed stock market sentiment. You can view it here for free. If you’d like to see more of our paid work, you can start a 14-day no obligation free trial here.