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A Foolish Take: Investors Are Getting Scared


You'd think that by now, investors would be used to the ups and downs of the stock market. Yet even though the returns that most major indexes have produced over the past 10 years have been nothing short of amazing, sometimes all it takes is a single piece of concerning news to send investors into a near-panic.

One way to gauge how ordinary investors are reacting to current events and market conditions is by looking at the American Association of Individual Investors and its weekly survey of market sentiment. Thousands of members have the opportunity every week to answer whether they believe that the stock market will be higher, lower, or roughly in the same place six months from now.

As you can see below, the survey results over the past couple of months have seen a decided shift toward fear about the future direction of the market.

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Source Fool.com


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