DIA - AAII Sentiment Survey: Bearish Sentiment Above Average For First Time In 12 Weeks

2023-08-24 14:43:18 ET

Summary

• Bullish sentiment decreased and is below average for the second consecutive week.
• Bearish sentiment is above average for the first time in 12 weeks at 35.9%.
• Neutral sentiment is below average for the ninth time in 12 weeks at 31.8%.

Bullish sentiment decreased and is below average for the second consecutive week in the latest AAII Sentiment Survey. Bearish sentiment is above average for the first time in 12 weeks.

Bullish sentiment, expectations that stock prices will rise over the next six months, decreased 3.6 percentage points to 32.3%. Optimism is below its historical average of 37.5% for the second consecutive week.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, decreased 2.2 percentage points to 31.8%. Neutral sentiment is below its historical average of 31.5% for the ninth time in 12 weeks.

Bearish sentiment, expectations that stock prices will fall over the next six months, increased 5.8 percentage points to 35.9%. After 11 consecutive weeks of below-average readings, pessimism is above its historical average of 31.0%.

The bull-bear spread (bullish minus bearish sentiment) decreased 9.4 percentage points to -3.7%. This is the second consecutive week that the bull-bear spread is below its historical average of 6.5%.

This week's special question asked AAII members how they would describe the current economy. Here are the responses:

• Strong: 33.1%.
• Mixed with areas of strength and weakness: 43.4%.
• Weak: 7.4%.
• Not sure/no opinion: 15.3%.

This week's AAII Sentiment Survey results:

• Bullish: 32.3%, down 3.6 percentage points.
• Neutral: 31.8%, down 2.2 percentage points.
• Bearish: 35.9%, up 5.8 percentage points.

Historical averages:

• Bullish: 37.5%.
• Neutral: 31.5%.
• Bearish: 31.0%.

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