NOT ENOUGH ANXIETY

The individual investors are not panicking after the bigger than 8% drop of SP500 according to AAII weekly sentiment report. (The AAII Investor Sentiment Survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months; individuals are polled from the ranks of the AAII membership on a weekly basis. Only one vote per member is accepted in each weekly voting period.)

Long-Term Average:

• Bullish: 39.0% 
• Neutral: 30.5% 
• Bearish: 30.5% 

We are pretty much over the long term average median. The bullish sentiment increased by 7% this week and the bearish sentiment dropped by 11.2%. Surpsringly this positive sentiment improvement has happened after stocks were hit by heavy selling. After such a closely 10% correction since September usually the individual investors getting more scared, but not now, which might be a red flag for more rally.

The markets performed well yesterday and all US benchmark indices closed in green territory again.

• DJIA +1.32%
• SP500 +1.23%
• Nasdaq +1.60%

Thursday was the 10th session this month that the DJIA jumped or dropped by more than 1%.

The BFM Assets Team.