Recently, AAII's bearish sentiment index dropped to 27%, a low not seen since October of last year. Even more interesting is that the bearish ratio has fallen below 30% for the first time in over thirty years.

Looking back at the historical records, whenever such extreme bearish sentiment dissipates and the ratio falls below 30%, it often signals the end of a bear market. Based on past experience, this kind of turning point usually becomes evident within the following 6 to 12 months, and entering the second year, the market often continues this wave of positive returns.

Of course, while historical patterns are somewhat indicative, each cycle must also be analyzed in conjunction with the current macro environment, policy landscape, and technical factors. However, from an emotional perspective, this signal is indeed worth paying attention to.