Market Sentiment Still Close To Extreme Bullishness

Bullish sentiment remains high according to the AAII and Investors Intelligence surveys.  The AAII reading of bullish investors fell 2.4% to 42.5% on the week.  This is the fourth week of declines in the AAII survey, however, remains a relatively high historical level.  Charles Rotblut at AAII describes this as a “cautious optimism”:

“Though there has been an above average level of bullish sentiment for four consecutive weeks, it remains a cautious optimism. As is evidenced by the recent rebound in bearish sentiment, many individual investors continue to worry about the pace of the economic recovery and the uncertainty coming out of Washington. Yields are also an issue, and I continue to receive frequent calls about how to find dividend-yielding stocks.”



This guest post previously appeared at PragCap >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at