The Stock Market Just Did Something Seen Just 39 Times Since 1987. History Is Clear About What Happens Next.
The S&P 500 (SNPINDEX: ^GSPC) has declined 16% from its record high in mere weeks as Wall Street has become unsettled by radical changes to U.S. trade policy under President Trump. Importantly, the stock market crash has coincided with unusually pervasive bearish sentiment, according to the American Association of Individual Investors (AAII).Bearish sentiment measured 56.9% during the week that ended Thursday, April 17, a level seen just 39 times since the AAII began collecting weekly data in 1987. The puts the latest reading in the 98th percentile, which means investors have been this pessimistic about the stock market only 2% of the time in nearly four decades.History is clear about what happens next.Continue reading
The S&P 500 (SNPINDEX: ^GSPC) has declined 16% from its record high in mere weeks as Wall Street has become unsettled by radical changes to U.S. trade policy under President Trump. Importantly, the stock market crash has coincided with unusually pervasive bearish sentiment, according to the American Association of Individual Investors (AAII).
Bearish sentiment measured 56.9% during the week that ended Thursday, April 17, a level seen just 39 times since the AAII began collecting weekly data in 1987. The puts the latest reading in the 98th percentile, which means investors have been this pessimistic about the stock market only 2% of the time in nearly four decades.
History is clear about what happens next.