Bearish sentiment plunges to its lowest level since 2021

According to latest results from the AAII Sentiment Survey, the Bearish sentiment from individual investors fell to 27.5%. Pessimism was last lower on November 18, 2021 (27.2%).

· Bullish sentiment - expectations that stock prices will rise over the next six months

- Decreased by 0.9 percentage points to 31.9%.

- Optimism remains below its historical average of 38.0% for the 19th consecutive week.

· Neutral sentiment - expectations that stock prices will stay essentially unchanged over the next six months

- Surged 8.8 percentage points to 40.6%.

- Neutral sentiment was last higher on January 1, 2020 (40.9%). The historical average is 31.5%.

· Bearish sentiment - expectations that stock prices will fall over the next six months

- Fell 7.9 percentage points to 27.5%.

- Pessimism was last lower on November 18, 2021 (27.2%).

- The drop ends an 18-consecutive-week streak of readings above the historical average of 30.5%.

- Slightly more than half of all respondents (51%) feel that stocks are overvalued and that many investors are being too optimistic.

- In contrast, 20% of respondents say that they feel stocks are fairly valued given economic and global circumstances.

- Around 16% have a mixed outlook.

- These respondents say certain kinds of stocks, such as growth stocks, are overvalued while others, like value stocks, are undervalued. Just 5% of respondents see stocks as currently being undervalued.

- Measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market short term.
- Individuals are polled from the AAII Web site on a weekly basis.