The
latest AAII investor sentiment survey is quite revealing: it shows that the
percentage of bullish dropping to its lowest level in seven months.
While
the percentage of bears rose only slight – to 36% compared to last week’s 33%
-- the bulls fell to 28% from the previous week’s 42%. That’s a sizable drop in bullish sentiment in
only a week, especially given that stocks retreated only 2.5% from last week’s
high.
Specifically,
the sudden drop in the AAII bulls illustrates a “run for cover” mentality among
the buyers and shows just how sensitive investors have become to even the
smallest of pullbacks in the market. Such
fragile psychology is a sign that the “wall of worry” is still intact and
likely to provide an underlying support for equities while the latest cycle
bottoms.
No comments:
Post a Comment