FYI: Two of the most widely followed stock market sentiment indicators come from Investors Intelligence and the American Association of Individual Investors. The Yale “Stock Market Confidence” indices are much lesser known, but they provide key insights into investor sentiment trends nonetheless.
The Yale School of Management has been surveying both individual and institutional investors for nearly two decades now, and below we provide historical charts that track the four survey questions they ask investors each month
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/interesting-trends-in-yale-investor-confidence-surveys/
Comments
Thanks for the reference to the Yale survey.
It is indeed interesting in a fun sort of way, but offers no usable guidelines for an investment decision. What, if any, is the correlation between these sentiment signals and the equity market returns. I see none!
Looking at the last chart, it appears that both individual and professional investors have underestimated market returns for .20 years from a numbers perspective. That's the same timespan that Yale has collected these data. That's not a confidence builder if one wants to use these data, at least as a partial signal, for market exposure decisions.
Where's the beef?
Best Wishes