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US equities saw more all-time highs this week, but individual investors are digging in their heels and actually turning more bearish. According to this week’s survey of stock market sentiment from AAII, bullish sentiment saw a slight increase of 1.6 percentage points, rising from 43.1% up to 44.7%. That now puts the current streak of sub-50% readings at 102 weeks! Over the last several months we have heard that the country has never been as divided as it is now politically, and in terms of sentiment, we are seeing a similar picture as it has become seemingly impossible for the bullish camp to get a majority.
While the move in bullish sentiment was slight this week, bearish sentiment saw its largest one-week increase in 13 weeks, rising from 26.5% up to 32.3%. That’s the highest reading since the election, and takes bearish sentiment back above the downtrend that it had broken below a few weeks back.