Even with the equity market positive on the week, this week’s readings in sentiment among individual investors were little changed. According to the weekly survey from the American Association of Individual Investors (AAII), bullish sentiment declined from 32.1% down to 31.5%. While the decline is miniscule, this is the seventh straight week where bullish sentiment has been below the bull market average of 38.7%. The last time we saw this many consecutive weeks of below average sentiment was back in August. Similar to bullish sentiment, bearish sentiment was also little changed on the week, rising from 22.8% up to 23.2%.
The real notable aspect of the recent sentiment data is the fact that neutral sentiment is so elevated. At a level of 45.34%, this is the third straight week where neutral sentiment has been above 40%, which is the longest streak since last spring. It’s also the longest streak of above 45% readings since 1989. Talk about conviction!