Monday, June 10, 2013

Investor sentiment and the "wall of worry"

The latest AAII investor sentiment poll showed some improvement from the past few weeks.  The latest percentage of bullish investors was 29% compared with 36% the previous week.  Among bearish respondents 39% were bearish compared to last week’s 30%.  This marks the first time since May 1 that there have been more bears than bulls. 

The increase in bearish sentiment was a welcome change to the relentless bullish predisposition among traders which should serve to keep the market’s “wall of worry” intact through the current volatility phase.  

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