Small, Retail Investors Getting More Bullish, Just As Institutions Go The Other Way

The divergence in small investor sentiment and institutional sentiment continued to diverge this week.  Small investor bullishness actually jumped in the latest week to 41.3% from 36.6%.   Charles Rotblut at AAII elaborates on the climb:

“Though the problems with European sovereign debt have rattled the major indexes, the rebound in bullish sentiment suggests individual investors, in aggregate, remain cautiously optimistic. As I have mentioned before, members are split on how much the problems in Europe are impacting their attitudes towards stocks. Though individual investors some are more concerned, many believe view the debt crisis as a regional and not a global issue.”


Meanwhile, the Investor’s Intelligence poll of financial advisers showed a decline in bullish sentiment to 43.8% from 47.2%.    It’s important to note that the II poll has served as a much better barometer of sentiment over the course of the last two years.


Source: AAII, II

This guest post previously appeared at the author’s blog, The Pragmatic Capitalist >

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