Bearish Sentiment Mirrors 35-Year-Old Pattern, Hovering Over 50% For 5 Weeks: Expert Cites 'Incredible Buying Opportunities' From Past

According to the American Association of Individual Investors (AAII), the bearish sentiment for the week stood at 52.2%, surpassing the bullish and neutral sentiments of the investors surveyed despite a drop in pessimism from the previous week.

What Happened: In the latest installment of the AAII Sentiment Survey, a weekly measure of investor sentiment collected from Thursday to Wednesday, the level of pessimism among individual investors regarding the short-term direction of the stock market declined. The bearish sentiment reduced from 58.1% to 52.2%.

However, Ryan Detrick, the chief market strategist at Carson Research, highlighted that this was the fifth straight week of the bearish sentiment hovering above the 50% mark.

The market last experienced such a trend in 2022 and 1990, he said that historically both of these periods proved to be an “incredible buying opportunity”.

AAII ...