Stocks Notch Highs Despite Pessimism
The S&P 500 Index is up 12.5% year-to-date, 17% over the past six months, and is at an all-time high. In fact, small caps, large caps, and tech stocks are all hovering near all-time highs. However, the one item not near new highs is investor sentiment. Despite the stellar market performance and uptrend in price, the number of bearish market participants outweighs the number of bullish participants. According to the American Association of Individual Investors (AAII) Sentiment Survey, bears are at 49.5%, neutral stance is at 22.5%, and bulls make up just 28% of those surveyed.
Image Source: AAII
Despite perceived high stock valuations, tariff fears, inflation worries, and geopolitical…
