Individual Investor Bearish Sentiment Hit Recent Highs

The share of bearish retail investors jumped to 53%, signaling increased caution as market volatility impacts personal portfolios.

Updated on Sept. 18, 2026 in Investing

Bold flat-color editorial illustration showing a heavy industrial anchor resting on a crate, representing market caution. — Individual investor sentiment hit a recent high of 53% bearishness, as retail savers shift capital away from equities amid high Treasury yields and global energy price volatility. AI Illustration. Upload story photo >

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Is now a good time for you to increase your investments despite recent stock market volatility?

Individual investor sentiment toward stocks has shifted sharply as 53% of survey respondents expressed a bearish outlook for the next six months. This shift follows a one-week surge in bearish sentiment that saw a 14 percentage point increase, marking the highest level of pessimism since May 2025.

Why it matters

The decline in market confidence is largely driven by sustained 5% yields on 10-year U.S. Treasury notes and rising oil prices stemming from the ongoing conflict with Iran. This environment has left only 30% of stocks trading above their 50-day moving average, creating a cautious atmosphere for household savers.

Bearish sentiment rose by 14 percentage points in one week to reach 53%, while bullish sentiment fell 10 percentage points to under 29%. With the CNN Fear and Greed Index now in fear territory, retail investors are navigating a market where only 30% of stocks trade above their 50-day average.

The players

American Association of Individual Investors

A non-profit organization that provides investment education and resources to help individual investors manage their portfolios.

CNN Fear and Greed Index

A proprietary market sentiment gauge that tracks seven indicators to measure whether stock prices are driven by fear or greed.

The details

Investor confidence relies on broader market signals, including interest rates and geopolitical stability. When 10-year Treasury yields remain near 5%, households often shift capital toward fixed-income alternatives, reducing demand for stocks. The current market environment is further strained by global energy pricing concerns, prompting many individual investors to retreat from equities.

May 2025: Previous high point for individual investor bearish sentiment.
September 17, 2026: Survey period for the AAII sentiment report.
September 18, 2026: Market rally and publication of sentiment survey results.

Money Landscape

The current shift to fear reflects a departure from the greed sentiment observed just one month ago. This volatility places today's market in a similar position to the May 2025 period of heightened retail caution.

When market sentiment shifts to fear, households should review their risk tolerance and long-term asset allocation with a financial professional. Sudden increases in bearishness may lead to higher volatility, making it a critical time to re-verify if your current savings remain aligned with your goals.

The takeaway

Increased bearishness often signals a market reset, which some participants view as a potential entry point for aggressive long-term investment. Monitor your portfolio's exposure to volatile sectors and consult with a professional regarding your specific investment timeframe.