Investment Newsletter Editors’ Optimism Falls

Investment newsletter editors’ optimism about U.S. stocks last week fell to its lowest level in four months, the latest poll by Investors Intelligence shows.

The percentage of newsletters that consider themselves bullish, or optimistic, slipped to 43.9% from 46.9% the week before, matching the year’s low reached April 20.

The percentage of newsletters considering themselves bearish, or pessimistic, rose for a third week, climbing to 30.6% from 30.2% the week before.

Those not bullish or bearish expect a modest near-term pullback in stocks.

The Investors Intelligence poll often is viewed as a “contrarian” indicator--meaning that if a high percentage of professionals are bullish, it often means the market will go the other way.

However, as with any measure of investor sentiment, a contrarian bet on the Investors Intelligence poll isn’t necessarily a sure bet.