Between Facebook’s (FB) record plunge last week and some other high profile weakness in former leading stocks, we would have thought that individual investor sentiment would have taken a big turn for the worse this week. While bullish sentiment did decline, the drop was smaller than we were expecting. According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment dropped from 31.52% down to 29.11%, which is actually smaller than the declines we saw in each of the prior two weeks when equities were doing better!
Although bullish sentiment saw just a small decline, bearish sentiment saw its largest one-week increase since the end of June, rising from 26.9% up to 32.1%. Still, that’s hardly a level that indicates much in the way of worry.
Most of this week’s new bears came from off the fence, as neutral sentiment declined from 41.58% down to 38.81%.