This morning's release of individual investor sentiment figures from the American Association of Individual Investors (AAII) showed that bullish sentiment increased from 46.28% up to 49.2%. This is the highest weekly reading since January and represents the fourth straight week of increases. At the same time that bullish sentiment is rising, bearish sentiment plummeted to 17.6%, which is the lowest reading since January 2012! With all the hype in the media regarding the shutdown in October, it is pretty amazing to see that individual investors were unfazed by all the hysteria.
We just sent out a report to clients showing how the S&P 500 has performed following prior periods in the current bull market where bearish sentiment dipped below 20%. Clients can view the report by clicking on the link below. If you are not currently a client, sign up today for a five-day free trial and instant access.