If you want to hear a bullish outlook for the stock market right now, don’t ask investors.
Investor expectations for a rise in stock prices over the next six months fell 16.4 percentage points this week to 22.4%. This is the lowest level of bullish sentiment since the heart of the pandemic in July 2020 and well below the historical average low of 28%, according to the latest sentiment survey from the American Association of Individual Investors (AAII ).
But it’s not just that the optimism of ordinary investors is waning. The AAII survey, which the AAII has conducted weekly among its members since 1987, also found that investor expectations for a decline in stock prices over the next six months jumped 12.1 percentage points to 39 , 3%, above the historical average of 30.5%. Others believe stock prices will remain unchanged for the next six months, with neutral sentiment rising 4.4 percentage points to 38.3%, also above its all-time average, which is 31. , 5%.