Investors Have Officially Become Convinced That Stocks Do Not Go Down

Investors have officially become convinced that stocks do not decline.  Sentiment readings are literally off the charts this week with the AAII small investor  bullish sentiment survey surging 9% to 57.6%.  That’s the highest reading since January 2007.  Charles Rotblut of AAII is reporting that 60% would be a two standard deviation event.

chart

This week’s Investor’s Intelligence survey  also saw a large increase in bullishness to 48.6%.   This is the highest reading since May 6th, but is also 8 points shy of the high recorded on April 28th.

chart

——————–

This post previously appeared at PragCap >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.