Thursday, May 31, 2012

Individual Investor Bullish Sentiment Remains Low

In today's sentiment survey released by the American Association of Individual Investors, bullish investor sentiment declined to 28.02% versus last week's reading of 30.47%. The bull/bear spread was also more negative at -14% versus -8% in the prior week. Additionally, the 8-period moving average of bullish sentiment is at its lowest level, 28.7%, since March of 2009 when this average was reported at 27.5%.

From The Blog of HORAN Capital Advisors

The AAII sentiment survey is a contrarian indicator and this low bullishness level is only one indicator that might suggest the market is at a low point; however, Barry Ritholtz of The Big Picture website points to an analysis by Jim Bianco at Bianco Research noting the confused sentiment of the market based on newsletter writers. Certainly, a number of issues like the euro zone crisis seem to be driving sentiment at the moment, along with recently reported weaker economic data in the U.S.

1 comment :

Ed Butowsky said...

Stock market is a pretty complex business. You have to be ready with the journey if you want to consider investing.