Newsletter Bullishness at 12-Month Low

Optimism about U.S. stocks fell to its lowest level in more than a year, according to a poll of newsletter editors released Wednesday by the publication Investors Intelligence.

The percentage of editors who considered themselves bullish, or optimistic, fell to 39.2% in the survey conducted Friday from 41% the previous week. Optimism hasn’t been that low since the week of Oct. 2, 1998, when it touched 38.5%.

The low level of bullishness may boost the spirits of some investors because it’s a “contrary” indicator. Technical analysts--who try to predict market moves based on price patterns and other statistical measures--say declining optimism indicates that investors who view the market less favorably are saving up cash that can be used to fuel the next rally when sentiment changes.

The percentage of editors who considered themselves bearish, or pessimistic, about U.S. stocks rose to 37.5% from 36.8% the prior week. Editors expecting a 10% drop in major indexes in the next 12 months, which Investors Intelligence calls a correction, rose to 23.3% last week from 22.2% the previous week.

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Bearing Down

The percentage of market newsletter editors who were bullish on stocks fell to 39.2% in the latest survey by Investors Intelligence--its lowest level since the week of Oct. 2, 1998. Weekly bullishness levels and latest:

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Bulls as of last week: 39.2%

Source: Investors Intelligence