This week’s sentiment survey from the American Association of Individual Investors (AAII) showed modest increases in both bullish and bearish sentiment. In the case of bullish sentiment, we saw an increase from 30.81% up to 32.5%, which marks the 17th straight week where sentiment has been below its average level dating back to 2009. During that period, the only other longer streak of below average readings in bullish sentiment was three years ago in the 20-week period stretching from April through August of 2012.
In spite of the slight increase in bullish sentiment, we also saw a small increase in bearish sentiment which rose from 23.24% up to 25.6%.
If there is anything constructive to say about this week’s sentiment survey, it is that at least investors are becoming a little more decisive, which isn’t saying much compared to recent history. As shown in the chart below, neutral sentiment fell from 45.95% down to 41.9%. Even after the decline, though, neutral sentiment came in above 40% for a record 16th straight week. Investors just can’t seem to make up their minds.