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Whether you want to call it skepticism, self-control, or downright stubbornness, the fact that bullish sentiment has been so restrained even as US equities continue to trade to record highs is amazing. In this week’s survey from AAII, bullish sentiment on the part of individual investors dropped from 37.01% down to 31.58%, marking the second straight week where bullish sentiment has declined by five percentage points or more. That hasn’t happened since May. This week’s survey also marked the 108th straight week where bullish sentiment was below 50%.
Bearish sentiment didn’t see much of an increase this week, rising from 32.68% up to 33.49%. The key here, though, is that bearish sentiment now exceeds bullish sentiment for the first time since the election. The DJIA may be at 20K, but individual investors want no part of it.