Bearish sentiment rises to 6-week high despite stock market's rally: AAII

Although the stock market keeps rallying toward record highs, bearish sentiment among retail investors rose to a 6-week high, according to the results of survey conducted by the American Association of Individual Investors (AAII). The survey found that for the week ended Jan. 8, those who were bullish over the next six months fell 4.1 percentage points to 33.1%, while those who were bearish increased 8 percentage points to 29.9%. The bearish percentage was the highest since 30.3% reading for the week ended Nov. 28. Those who were neutral fell 3.9 percentage points to 37.0%. Meanwhile, the S&P 500 rose 0.7% over the week ended Jan. 8, and rallied 0.6% toward a record close on Thursday. "Several respondents brought up the conflict with Iran and tensions in the Middle East," the AAII said. "Also affecting sentiment are the trade agreement between the U.S. and China, Washington politics, earnings growth, the economy, valuations and the stock market's recent record highs."

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