Part 2/11:
Contradictory Sentiment Amid Strong Market Gains
Historically, markets that experience a 25% or more rally often coincide with bullish sentiment among investors. However, the current environment defies that pattern. Data from Tireless Ken and the University of Michigan show that despite the substantial gains, sentiment remains stubbornly negative. Most investors moved to cash in April, skeptical about a full recovery, influenced heavily by the prevailing economic fears and the narrative that the Federal Reserve’s stance would hinder growth.