The American Association of Individual Investors (AAII) Sentiment Survey is a widely used tool that assists investors in gauging the overall sentiment of individual investors within the stock market. By offering insights into the market's bullish, bearish, and neutral viewpoints, the AAII Sentiment Survey serves as a valuable resource for investors seeking to comprehend market trends.

What is the AAII Sentiment Survey?
The AAII Sentiment Survey is a weekly assessment carried out by the American Association of Individual Investors, a non-profit organization focused on providing investment education and resources to individual investors. This survey has been in operation since 1987 and polls AAII members regarding their outlook for the stock market over the next six months. Participants can select from three options: bullish, bearish, or neutral. AAII members are invited to vote weekly, resulting in a clear representation of both short-term and long-term sentiments, as well as trends in the survey data over time.

How to Use AAII Sentiment Survey
To interpret the results of the AAII Sentiment Survey, consider the following:

• Bullish sentiment: The percentage of respondents who anticipate that the stock market will rise in the next six months.
• Bearish sentiment: The percentage of respondents who believe the stock market will decline in the next six months.
• Neutral sentiment: The percentage of respondents who expect the stock market to remain relatively stable over the next six months.

The survey results are generally presented as a percentage of the total respondents for each sentiment category. Additionally, historical averages for each sentiment are often included for comparison. When reviewing the actual surveys, it becomes clear that a higher percentage of "bullish" responses indicates that more individuals believe the market will rise, and vice versa. Traders can also access data dating back to 1987, providing them with valuable information for further analysis.

Why is the AAII Sentiment Survey important?
The AAII Sentiment Survey holds significance for several reasons:

• Investor sentiment: The survey provides insights into the attitudes of individual investors, aiding in the identification of potential market trends and reversals.
• Contrarian indicator: Some investors utilize the AAII Sentiment Survey as a contrarian indicator, believing that extreme readings in either bullish or bearish sentiment may indicate a possible reversal in market direction.
• Market analysis: By tracking the survey results, investors can enhance their understanding of the factors affecting market sentiment and make more informed decisions regarding their investment strategies.

Who publishes the AAII Sentiment Survey?
The AAII Sentiment Survey is conducted and published by the American Association of Individual Investors. The survey data is gathered from the voluntary responses of AAII members who participate in the survey.

Where can I find the AAII Sentiment Survey?
The results of the AAII Sentiment Survey are publicly accessible through the AAII website, typically updated every Thursday. The website offers a summary of the latest survey results, including the percentage of respondents in each sentiment category, along with historical averages for comparison.