Bullish sentiment among individual investors fell more than eight percentage points this week, dropping to the lowest level since August 2010. According to the American Association of Individual Investors (AAII), bullish sentiment dropped from 30.2% down to 22.19% for the largest weekly decline since April 12th. What makes this week’s decline even more noteworthy is the fact that the big drop in bullish sentiment came in a week where the S&P 500 was up more than 2%.
So how does the market typically perform following similarly low levels of bullish sentiment? While there are a lot of theories that say the market does well or does bad, earlier today we sent out a report to Bespoke Premium clients that actually quantifies how the market has actually performed on a historical basis. Clients that wish to view the report can click on the link below. If you are not yet a client, sign up today.