Thursday, May 10, 2012

When Everyone is Bearish - Time to Buy

Below is the most recent AAII Sentiment numbers. As you can see, investors have turned dramatically bearish and away from the previous bullish stance. When this happens I go against the grain and look for buying opportunities.

Keep your eye out for some stock/ETF ideas in the blog later today.


The AAII Investor Sentiment Survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months; individuals are polled from the ranks of the AAII membership on a weekly basis. Only one vote per member is accepted in each weekly voting period.

Survey Results

Sentiment Survey
Results
Week ending 5/9/2012 Data represents what direction members feel the stock market will be in the next 6 months.
Bullish 25.4%
down 10
Neutral 32.5%
down 3.6
Bearish 42.1%
up 13.6

Change from last week:

Bullish: -10.0
Neutral: -3.6
Bearish: +13.6


Long-Term Average:

Bullish: 39%
Neutral: 31%
Bearish: 30%

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