Bullish sentiment stays below 20% for a second week

The results from the latest AAII Sentiment Survey show bullish sentiment staying below 20% for a second consecutive week. Neutral sentiment increased, while the percentage of individual investors with pessimistic expectations decreased.

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

- Increased by 3.0 percentage points to 18.9%

- Optimism has been below 20% on consecutive weeks since May 18 and 25, 2016.

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

- Rose 1.5 percentage points to 37.3%.

- Neutral sentiment is above its historical average of 31.5%.

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

- Decreased by 4.5 percentage points to 43.9%.

- Pessimism is above its historical average of 30.5% for the 21st time out of the last 22 weeks.

- At an unusually high level (above 40.1%) for the 12th time out of the last 14 weeks.

- A little less than one out of four (22%) respondents view the commodities sector—including oil, gas and metals—as an attractive buying opportunity. In addition, 17% of all responses favor the energy sector.

- Around 10% like industrials and defense sectors right now. Roughly 9% of respondents say that the financial industry has good investment potential.

- The technology sector was mentioned by 8% of respondents, while 7% mentioned health care.

- The consumer staples and utilities industries were named by 6% of respondents each. The real estate sector was listed by 5%.

- 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.