Investors Are The Most Bullish In More Than Three Years

Investors Are The Most Bullish In More Than Three Years
Andrew Rummer

almost 3 years ago1 min

Mentioned in story

Smaller investors in the US are the most optimistic since January 2018, according to a widely followed weekly survey from the American Association of Individual Investors (AAII). 

The blue line on the chart shows how the AAII’s bull-bear spread – the number of individual investors who think stocks will rise over the next six months, minus the number who think they’ll fall – has climbed since the start of February. 

However, before you get too excited, plenty of investors consider this bull-bear spread to be a contrarian indicator that people in the market are becoming too optimistic – and hence stocks might face some weakness.

As the vertical green line shows, the last time the bull-bear spread was this elevated, the benchmark S&P 500 index of US stocks (shown in pink) peaked a couple of weeks later, before dropping nearly 10% through March 2018.



All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG