One of the most enduring and perplexing streaks of the last few years came to an end this week as bullish sentiment on the part of individual investors topped 50% for the first time in just under three years. That’s right! The weekly sentiment survey from the American Association of Individual Investors (AAII) showed that bullish sentiment increased from 45.0 up to 50.5%. That’s the first 50%+ reading since the first week of 2015! That streak of 154 weeks without a 50%+ reading was the longest that we have ever seen in the history of the survey!
Instances of bulls having a majority in the weekly AAII poll haven’t just been uncommon in recent years either. Throughout the course of the current bull market dating back to 2009, there have only been 21 times during the prior 458 weeks where bullish sentiment was above 50%. We mentioned above that this was one of the most perplexing streaks that we have seen in the market in some time. The reason we use the word “perplexing” is that the streak continued through what has been one of the most consistent market rallies many investors have ever seen. Based on this week’s survey at least, investors are only just now coming around to the idea of being bullish. Hopefully they aren’t too late to the party!