The AAII Sentiment Survey is used by many investors and analysts to gauge market sentiment and as a contrarian indicator. For example, if the percentage of bullish investors is very high, it may suggest that the market is overbought and due for a correction. Conversely, if the percentage of bullish investors is very low, it may suggest that the market is oversold and due for a rally.
What is the AAII Sentiment Survey?
The AAII Sentiment Survey is a weekly survey conducted by the American Association of Individual Investors (AAII) that measures the sentiment of individual investors towards the stock market. The survey has been conducted since 1987 and is considered one of the most widely followed indicators of investor sentiment.
The survey asks individual investors whether they are bullish, bearish, or neutral on the stock market over the next six months. The results are then compiled and reported as a percentage of respondents who are bullish, bearish, or neutral.
How to Use AAII Sentiment Survey
The AAII Sentiment Survey can be a useful tool for investors to gain insight into the sentiment of individual investors towards the stock market. Here are some ways you can use the survey results:
- Bullish sentiment: The proportion of respondents who think the stock market will rise over the next six months is known as the bullish sentiment index.
- Bearish sentiment: The proportion of respondents who believe the stock market will decline over the next six months.
- Neutral sentiment: The proportion of respondents who believe the stock market will experience little change during the next six months.
It’s important to note that the AAII Sentiment Survey is just one tool to use in your investment decision-making process. It should be used in conjunction with other indicators and analysis to make informed investment decisions.
Why the AAII Sentiment Survey is important
The AAII Sentiment Survey is important for several reasons:
- Market sentiment: The survey provides valuable insight into the sentiment of individual investors towards the stock market. This can help investors understand how the market is perceived and how investors are positioning themselves.
- Contrarian indicator: The AAII Sentiment Survey can be used as a contrarian indicator. If a high percentage of investors are bullish, it may suggest that the market is overbought and due for a correction. Conversely, if a high percentage of investors are bearish, it may suggest that the market is oversold and due for a rally. This can help investors make contrarian investment decisions that may be profitable.
- Confirmation of trends: The AAII Sentiment Survey can also be used to confirm trends in the market. If a high
Who publishes the AAII Sentiment Survey?
The AAII Sentiment Survey is published by the American Association of Individual Investors (AAII), a nonprofit organization that was founded in 1978 to educate individual investors about stock investing. The survey has been conducted by the AAII since 1987 and is considered one of the most widely followed sentiment surveys in the financial industry. The survey is conducted on a weekly basis and the results are released every Thursday morning.
Where can I find the AAII Sentiment Survey?
The AAII Sentiment Survey can be found on the American Association of Individual Investors (AAII) website. The survey is released every Thursday and is available to both AAII members and non-members. The survey results are published in a variety of formats, including charts, graphs, and written analysis, and provide insights into the sentiment of individual investors towards the stock market. In addition to the weekly survey, the AAII website also provides historical data on the survey dating back to 1987.
