Equity bulls show highest sentiment in 30 months, says AAII

Equity bulls show highest sentiment in 30 months, says AAII
Meanwhile, pessimism is unusually low according to investor poll.
DEC 22, 2023

A barometer of investor sentiment has revealed some unusually high levels of optimism and unusually low levels of pessimism for the U.S. stock market in the next six months.

The weekly AAII Sentiment Survey released Thursday reveals that bullishness was up 1.6 percentage points to a reading of 52.9%, its highest in two and a half years, while bearishness was up by the same margin at 20.9%.

Along with those investors who are neutral on the six-month outlook for equities (26.2%) these percentages are some way from historic averages (bullish 37.5%, neutral 31.5%, bearish 31%), continuing trends of seven consecutive weeks for bullishness and bearishness, and three weeks for neutral sentiment.

The bull-bear spread (bullish minus bearish sentiment) remained unchanged at 32.0%. The bull-bear spread is above its historical average of 6.5% for the seventh consecutive week and the eighth time in 16 weeks.

INTEREST RATES

The survey also asked investors if they believe the Fed made the correct decision in leaving interest rates unchanged this month, with the following responses:

  • It was the right decision: 73.1%
  • They should have raised rates: 10.1%
  • They should have cut rates: 3.6%
  • Not sure/no opinion: 12.3%

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.