Fiscal Cliff Spooks Individual Investors

 |  Includes: SPY
by: Bespoke Investment Group

This week's sentiment report from the American Association of Individual Investors (AAII) showed that the ongoing debate over the fiscal cliff during the final days of 2012 had a negative impact on investor sentiment.

After five straight weeks of increases, bullish sentiment declined for the second week in a row, falling from 44.4% down to 38.7%. Ahead of Tuesday's temporary resolution, it appears as if many investors took money off the table to hedge against a possible sell-off if no agreement was reached. So when an agreement was finally reached they moved back in, pushing stocks higher.

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