Short-term stock optimism soars among retail investors, AAII survey shows

Investing.com — The latest AAII Sentiment Survey reveals a significant increase in optimism among individual investors regarding the short-term outlook for stocks. Simultaneously, levels of neutral sentiment and pessimism have seen a decline.

Bullish sentiment, the expectation that stock prices will rise over the next six months, surged 18.0 percentage points to 43.4%. This marks the first time in four weeks that optimism has exceeded its historical average of 37.5%.

Neutral sentiment, the expectation that stock prices will remain essentially unchanged in the next six months, fell by 6.9 percentage points to 27.1%. This drop puts neutral sentiment below its historical average of 31.5% for the 27th time in the past 29 weeks.

Bearish sentiment, the expectation that stock prices will drop over the next six months, declined by 11.1 percentage points to 29.4%. This places pessimism below its historical average of 31.0% for the second time in 10 weeks.

The bull-bear spread, which is the difference between bullish and bearish sentiment, rose by 29.1 percentage points to 14.0%. This is the first time in five weeks that the bull-bear spread has exceeded its historical average of 6.5%.

In a special question posed this week, AAII members were asked about potential changes they anticipate making to their portfolios this year. The responses were as follows:

30.2% plan to focus more on portfolio income, including more investments in dividend-paying stocks and bonds.

28.9% do not anticipate making any changes to their portfolios.

19.5% intend to allocate more conservatively, with more investments in bonds and cash.

17.5% aim to invest more aggressively, with more investments in stocks and growth stocks.

3.4% have other plans.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.