Investor Sentiment Remains Cautious — And That’s Bullish, Says Sevens Report

Despite stocks pushing higher, investors haven’t gone all-in—and that’s a good thing, according to Tom Essaye, president of Sevens Report Research.

Citing multiple sentiment measures, Essaye noted that investor optimism is still muted compared to historical averages:

• AAII Investor Sentiment Survey shows just 33.2% bullish, below its long-term average of 37.5%

• Investors Intelligence Bulls/Bears spread stands at a cautious 10.2%

• The CNN Fear & Greed Index sits at 60%, barely in “Greed” territory and trending lower in recent weeks

“It would be much more concerning if every reading were overwhelmingly bullish.”
— Tom Essaye, Sevens Report

Essaye says this balance is actually healthy—it prevents bubbles and leaves room for the market to rise further as sentiment gradually improves.

“Investor sentiment is much more balanced and neutral than the price action would imply.”

In his view, the continued skepticism could fuel further upside, so long as macro headwinds like tariffs, geopolitics, and economic growth don’t deteriorate.