As we discussed in an earlier post, sentiment, as proxied by AAII’s weekly survey, has been overwhelmingly bullish. Other sentiment surveys are echoing the exuberance among investors. The Investors Intelligence survey of equity newsletter writers likewise saw bullish sentiment rise again this week from what were already strong levels. 64.7% of respondents reported as bullish this week. That is in the top 3% of all readings in the history of the survey. The last time this reading on bullish sentiment was this elevated was in January of 2018. Prior to that, you would need to go all the way back to February of 1987 to find a time that a higher share of respondents reported as bullish.
Meanwhile, just 16.7% of the respondents reported as bearish. While not at the same sort of extreme as bullish sentiment (in the bottom 13% of all readings), that is the lowest reading since early September.
In addition to gauging bearish sentiment, the report also measures the percentage of respondents that are “looking for a correction”. This reading ticked slightly higher this week rising from 18.2% up to 18.6%. While slightly higher, that is still in the bottom 20% of all readings across the history of the survey. More recently, though, this was more of an extreme low. Last week’s reading of 18.2% was the lowest reading since December of 2006. Click here to view Bespoke’s premium membership options for our best research available.