The AAII Sentiment Survey is a well-known tool that shows how individual investors feel about the stock market. It tells us if people are feeling positive (bullish), negative (bearish), or neutral about the market. This survey helps investors understand what’s going on in the market and its trends.
What is the AAII Sentiment Survey?
The AAII Sentiment Survey happens every week by the American Association of Individual Investors (AAII), a group that helps regular people with investing. They’ve been doing this survey since 1987. The survey asks AAII members how they think the stock market will do in the next six months. Members can say they feel positive (bullish), negative (bearish), or neutral.
Every week, AAII members give their opinions in the survey. This helps us see how people feel both in the short term and the long term about the stock market. It also shows how opinions change over time.
How to Use AAII Sentiment Survey
To understand the AAII Sentiment Survey results, it’s important to know:
- Bullish sentiment: This shows how many people believe the stock market will go up in the next six months.
- Bearish sentiment: This indicates how many people think the stock market will go down in the next six months.
- Neutral sentiment: This tells us how many people expect the stock market to stay about the same in the next six months.
The survey results are usually shown as percentages of all the people who responded in each sentiment category. They often include past averages for comparison.
When you look at the surveys, a higher percentage of “bullish” answers means more people think the market will rise, and vice versa.
Traders can also check data going back to 1987, which helps them with their research.
Why is the AAII Sentiment Survey important?
The AAII Sentiment Survey holds significance for several reasons:
- Investor sentiment: It gives a peek into how individual investors are feeling, which helps to spot possible market trends and changes.
- Contrarian indicator: Some investors see the survey as a contrarian indicator. They believe that when bullish or bearish sentiment becomes extreme, it might signal a potential shift in the market’s direction.
- Market analysis: By keeping an eye on the survey outcomes, investors can grasp the factors affecting market sentiment better. This allows them to make smarter decisions about their investment plans.
Who publishes the AAII Sentiment Survey?
The American Association of Individual Investors conducts and publishes the AAII Sentiment Survey.
The survey collects data from AAII members who choose to participate voluntarily.
Where can I find the AAII Sentiment Survey?
The AAII Sentiment Survey results are accessible to everyone via the AAII website, usually updated every Thursday.
On the website, you can find a summary of the latest survey findings, which include the percentage of respondents in each sentiment category. It also provides historical averages for comparison.