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The Most Hated V-Shaped Rally: A Deep Dive into Sentiment, Politics, and Market Fundamentals

Skepticism in the Face of Market Peaks

The current stock market rally, despite reaching new all-time highs, is painted as the most hated V-shaped recovery in recent times. What’s unusual about this rally isn’t just its rapid ascent—it's the widespread skepticism surrounding it. According to Fundstrap’s sentiment surveys, investors remain largely bearish, even as the market climbs. For the past five weeks, as the S&P 500 hit record levels with a 34% rally, net bullish sentiment has lingered in negative territory, around -10.7. This indicates that more investors are still inclined toward bearish positions than bullish ones, which is typically counterintuitive during a sustained bull run.