After tracking below historical levels for much of the year, bullish sentiment among investors jumped to its highest level since January for the week ended Wednesday. That's according to the American Association of Individual Investors’ latest sentiment survey.
Of those polled, 41 percent said they felt the stock market would rise over the next six months, up from 29 percent in the prior week. Meanwhile, 22 percent said they expected stocks to fall, down sharply from 36 percent.
But remember, the AAII results are often a contrarian indicator. That’s because some feel the stock market is most likely to crash when investors are piling in with little hesitation, as was the case around the time of the dot-com boom. On March 8, 2000, AAII said 58 percent of investors were bullish on the stock market - two days before the Nasdaq Composite finally reached its peak.
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