Investors came back from the beach this week, but there still appears to be very little in the way of enthusiasm towards the equity market. In the latest sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment increased from 28.6% up to 29.75%. An improvement? Yes. But when bullish sentiment is below 30%, it is generally a sign of pessimism. This week’s sub-30 reading also represents the 45th straight week where bullish sentiment was under 40%.
This week’s survey also showed that bearish sentiment declined from 31.52% down to 28.48%. With that decline, bearish sentiment is now once again lower than bullish sentiment for the first time in three weeks.