2/8/2019
By Charles Payne, CEO & Principal Analyst

Well, it’s not just the Federal Reserve that’s moved to neutral. According to the American Association of Individual Investors (AAll), there has been a sharp move to neutral, taking the sentiment rating to its highest level since late July 2018. The report asks investors about their feelings on the stock market six months out, so it’s clear individual investors probably think we’ve come too far, too fast this year.

Perhaps, it’s not too ironic. Essentially, that’s the sentiment of professional investors as well, although most missed this move higher and would be loathed to turn around now and voice their optimism. Be that as it may, individuals have had pretty good timing, having seen an uptick in bullishness a week before the December low. If this market rally continues, expect to see individuals quickly change their minds, which is a lot more than I can say for the experts.

• Bullishness: 31.8% -5.9 percentage points
• Bearishness: 31.8% -0.6 percentage points
• Neutral: 36.5% +6.5 percentage points

Charles Payne
Wall Street Strategies

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