This week's investor sentiment reading reported by the American Association of Individual Investors is suggesting individual investors might be getting too bullish.
- bullish investor sentiment is reported at 49.18% this week. This is the highest level since 51% was reported on August 13, 2009.
- bearish sentiment is reported at 22.95% and is the lowest bearishness reading since 22.31% on February 27, 2007.
- the bull/bear spread is reported at 26% and is the widest spread since 28% was reported on May 8, 2008.
Data Source: American Association of Individual Investors
As noted in yesterday's post, Markets And Their 200 Day Moving Average, the market in 2010 will likely be more of a stock pickers market than one where a rising tide lifts all markets. Focusing on those stocks that have not become extended from a valuation perspective will likely generate better returns in 2010.