Articles

AAII Investor Sentiment vs. S&P 500 (2009-2015)

Investor Sentiment (as per month-end July 2015)
Text/charts - source: https://www.bespokepremium.com

The latest survey (Status/30th July 2015) of investor sentiment from the American Association of Individual Investors (AAII) showed a large drop in bullish sentiment:

After climbing up to 32.5% last week, bullish sentiment dropped by over eleven percentage points to 21.1%

A bullish sentiment of 21.1% marks the lowest level since early June 2015 and the 18th straight week that it has been below the average reading of 38.19% since 2009.

The move in bearish sentiment was even larger, as pessimism spiked up to 40.7%.  That’s the highest level of bearish sentiment in nearly two years (August 2013).

As a result of these moves, the spread between bullish and bearish sentiment now stands at -19.59 percentage points, which is the most negative spread since April 2013!

While bullish and bearish sentiment readings moved to extreme levels, neutral sentiment actually dropped below 40% at the end of July 2015; being the first time since April 2015.  This ended a record 16 straight weeks where neutral sentiment was above 40%.