Based on the most recent poll by the American Association of Individual Investors (AAII), investor sentiment continues to sour with the start of 2025. Down from 35.4% the week before and below the historical average of 37.5% for the second time in five weeks, bullish sentiment dropped to 34.7% for the week ending January 8.
Reflecting concern among individual investors as they evaluate the state of the stock market over the next six months, bearish sentiment climbed to 37.4% from 34.2% during the same period. Representing forecasts of little price adjustments, neutral mood dropped from 30.4% the previous week to 28%.
Tracking investor sentiment since 1987, the AAII survey raises questions over market volatility following a difficult start to the year. Still, Evercore analysts are upbeat, predicting that the technology industry would propel a 20% increase in the S&P 500 by 2025. Since the start of the year, the S&P 500 ETF Trust (SPY, Financial) has acquired almost 0.9%; nonetheless, the mixed attitude highlights anxiety among retail investors in view of changing market conditions.
