Retail Traders Are Turning Pessimistic on Stocks for First Time Since November
- Bull-bear spread flips to negative after 24 positive weeks
- Survey shows individual investors split on stocks’ direction
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Individual investors are pessimistic that the US stock market can bounce back after stumbling in April with inflation remaining stickier than expected and economic growth stalling.
After more than five months of mostly robust optimism, the closely watched bull-bear spread from the weekly American Association of Individual Investors (AAII) survey flipped to negative for the first time since early November, when stocks were climbing out of an October bottom. The -1.8 reading means investors with a bearish view on equities over the next six months just barely outpaced those with a more optimistic view. However, the drop in bullishness has accelerated in recent weeks.