Investors Re-Evaluate Risk Appetite

Surveys shows waning optimism

The mid-week sentiment surveys show investors turning more cautious. Both the AAII bull-bear spread and the NAAIM exposure index are just barely above their December lows. Consensus bulls have already dropped to their lowest level since November.

Bottom line: Recent volatility is fueling the fade in early-year optimism. But pessimism is neither widespread nor intense. That could leave investors who are still heavily exposed to stocks looking at opportunities beyond equities.