AAII Bearish Sentiment Rises To Highest Since May As Oil Prices Jump And Yields Climb

According to CNBC, bearish sentiment among individual investors rose to 53% in the latest American Association of Individual Investors weekly survey, up about 14 percentage points from a week earlier and the highest level since May of last year, while bullish sentiment fell to a little less than 29%, the lowest in about a year. Peter Boockvar of One Point BFG Wealth Partners said the extreme shift in sentiment is worth noting, while Keith Lerner of Truist Wealth said the pessimism is approaching levels often associated with market lows and pointed to market breadth readings that suggest stocks may be oversold. Boockvar also said investors should not place too much weight on sentiment gauges and said the AAII reading is his least favorite measure of market mood. Lerner said the recent pullback in stocks, especially technology shares, could offer an entry point, while the S&P 500 was still on track to finish lower for a second straight week and the third week in five.