News of Pfizer’s coronavirus vaccine last week pushed stocks to new highs. It also had a big impact on sentiment, as measured by the American Association of Individual Investors.
The organization’s weekly survey is a popular guestimate of the crowd’s psychology. It plunged from about 40 percent bullish in February (pre-pandemic) to the lows 30s in March. The number of “bearish” respondents also rose above 50 percent and stayed there for months.
Until that week, it is. The vaccine seems to have triggered two milestones:
- The percentage “bullish” spiked from 38 percent to 56 percent. That’s the highest since January 2018.
- The 18 percentage-point change was the biggest positive swing since July 2010.