Inflation, rising rates, war, pandemic — not much to be optimistic about.
Investors agree — less than 20% are bullish right now.
What does this mean for the stock market?
To help answer that question, today’s chart presents six bullish sentiment ranges versus the ensuing average S&P 500 12-month gain.
The stock market has performed better following relatively low optimism.
What is the meaning of investor sentiment?
Investor sentiment refers to the average outlook investors have towards a particular market or security.
What was the highest percentage of AAII bulls?
The highest percentage of AAII bullish sentiment was 75% and occurred on January 6, 2000 right at the peak of the dot-com bubble.
What was the lowest percentage of AAII bulls?
The lowest percentage of AAII bulls was 12% on November 16, 1990.