Individual Investor Sentiment at Highest Levels Since February

With a strong finish to 2011 and now a strong start to 2012, individual investors are starting to turn bullish again.  According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment is now at 48.88%, which is the highest level since early February.  While bullish sentiment is usually considered to be a contrary indicator, we would note that in 2011, bullish sentiment was decreasing as the market rallied and bottomed in June just ahead of the late Summer swoon.

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