Running of the Bulls: Is the “Dumb Money” Catching On?
Investors breathed a collective sigh of relief when Greece tentatively accepted a bailout from its EU partners. And the market meltdown in China appears to have run its course… at least for now.
So with the end of the world postponed for the time being, the market’s been rallying. Yet among individual investors, bulls seem hard to come by.
According to the latest American Association of Individual Investors (AAII) Sentiment Survey, there are fewer bulls today than at any time since the 2008 meltdown:
The AAII survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months.
To smooth out the noise a little, I used an 8-week moving average. And as you can see, bullishness is currently at lows you might normally associate with panic bottoms.
