The Rise of Optimism Among US Retail Investors
With the rising stock prices on Wall Street in recent weeks, optimism among US retail investors has also increased. According to the weekly AAII Sentiment Survey from May 21, 2025, the percentage of bulls rose to 37.7 percent. At the same time, the number of bears fell from nearly 60 percent four weeks ago to 36.7 percent, while the share of neutral investors increased to 25.6 percent.
The Impacts on the Stock Market
This development indicates a significant shift toward more confidence among US retail investors and is associated with a recovery in the US stock market, despite ongoing uncertainties such as the trade war.
Stable Sentiment in the German-Speaking Region
In contrast, the sentiment among investors in the German-speaking region shows relative stability. Here, the share of optimistic investors fell slightly to 48 percent, while the pessimistic camp rose to 33 percent. The neutral investors remained stable at around 19 percent. This indicates that the optimism of US investors has not been fully transmitted to Germany.
Possible Correlations and Significance for Investors
The growing confidence in the US could have signaling effects for international markets. Wall Street is considered a leading market, whose price gains can provide impulses for European exchanges. Increasing optimism can strengthen global confidence and may also impact German-speaking investors. However, the differing sentiments may reflect varying economic conditions.
For investors in the German-speaking region, it is advisable to closely monitor developments on Wall Street, use sentiment as an indicator for market movements, while also considering specific local market conditions.
Overall, the growing bullish sentiment in the US signals a positive underlying mood with potential global implications, but without an automatic transfer of momentum to Europe.