LIVE MARKETS-Individual investors fret over market concentration in Big Tech - AAII

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INDIVIDUAL INVESTORS FRET OVER MARKET CONCENTRATION IN BIG TECH - AAII

Pessimism among individual investors over the short-term outlook for U.S. stocks declined in the latest American Association of Individual Investors (AAII) Sentiment Survey. With this, both neutral sentiment and optimism rose.

Meanwhile, more than two-thirds of investors surveyed believe that the current level of concentration in mega-cap tech stocks is either a "major risk" or "somewhat concerning."

AAII reported that bearish sentiment, or expectations that stock prices will fall over the next six months, fell 5.6 percentage points to 43.6%. Bearish sentiment is "unusually high" and is above its historical average of 31.0% for the 51st time in 53 weeks.

Neutral sentiment, or expectations that stock prices will stay essentially unchanged over the next six months, gained 4.6 percentage points to 23.9%. Neutral sentiment is below its historical average of 31.5% for the 70th time in 72 weeks.

Bullish sentiment, or expectations that stock prices will rise over the next six months, edged up 1.0 percentage point to 32.6%. Bullish sentiment is below its historical average of 37.5% for the fourth time in six weeks.

With these changes, the bull-bear spread increased 6.5 percentage points to –11.0% from -17.5% last week. The bull-bear spread is below its historical average of 6.5% for the 38th time in 42 weeks.

In this week's special question, AAII asked its members how they view the market's current level of concentration in mega-cap technology stocks.

Here is AAII's graphic showing how they responded:

(Terence Gabriel)

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