Different Market Sentiment Indicators

Different Market Sentiment Indicators Most market sentiment indicators reflect a willingness to take on risk, signaling an optimistic market outlook. Image: Goldman Sachs Global Investment Research

Sentiment/VIX Composite vs. S&P 500

Sentiment/VIX Composite vs. S&P 500 Current levels of the Sentiment/VIX Composite Index are more indicative of near-term market peaks than the beginning of a bullish trend. Image: Real Investment Advice

Combined AAII & II Sentiment

Combined AAII & II Sentiment The combined sentiment of the American Association of Individual Investors (AAII) and Investors Intelligence (II) continues to exhibit a strong bullish sentiment, reflecting optimism and confidence among market participants. Image: Topdown Charts

Sentiment – NFIB Small Business Optimism Index

Sentiment – NFIB Small Business Optimism Index High interest rates and inflation have dampened small businesses’ optimism. However, the anticipation of rate cuts and economic improvements may boost sentiment going forward. Image: BofA Global Research

AAII U.S. Investor Sentiment Bearish Readings

AAII U.S. Investor Sentiment Bearish Readings The AAII Bearish Sentiment continues to be below its historical average, suggesting that AAII investors hold an optimistic view of the short-term stock market outlook. Image: The Daily Shot

Market Sentiment – Levkovich Index

Market Sentiment – Levkovich Index The Levkovich Index, or Panic/Euphoria Model, is currently in a state of “euphoria”, indicating a high level of optimism among investors. Image: Yahoo Finance

Sentiment – Global Risk Demand Index

Sentiment – Global Risk Demand Index The Morgan Stanley Global Risk Demand Index indicates that investors’ risk appetite is high, as it remains stretched, suggesting an elevated demand for risky assets. Image: Morgan Stanley

AAII Investor Sentiment Bull Minus Bear Spread

AAII Investor Sentiment Bull Minus Bear Spread The AAII investor sentiment bull minus bear spread, which is in the 91th percentile, raises legitimate concerns that the market may be overheating. Image: Deutsche Bank Asset Allocation