An interesting facet of the American Associations of Individual Investors Sentiment Survey has been the recent long streak of an above 40% reading for the neutral sentiment category. This week represents a record 16th straight week with the neutral reading above 40%. Although the neutral reading remains high, this week it did fall from last week's 45.95% to 41.87%. More of these neutral investors have now become more bearish as the bearish sentiment reading increased 2.36 percentage points to 25.60%, whereas the bullish sentiment reading increased a lesser 1.73 percentage points to 32.54%.
As the below chart shows, bullish sentiments remains at a relatively low level, near 1 standard deviation below its long run average. Additionally, the second chart below shows the 8-period moving average of the bullish sentiment reading and it remains near its lowest level since the end of the financial crisis six years ago.
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| From The Blog of HORAN Capital Advisors |
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| From The Blog of HORAN Capital Advisors |
Data source for charts: AAII
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