Why market sentiment is at all-time lows?

追加: 2026-05-27

[00:00:00]markets at all time highs.

[00:00:01]Traditionally, you see euphoric doesn't have to be euphoric but just happy. And if you look at a lot of the sentiment indicators, the one that gets flashed on the screen all the time is Michigan, which is like at the lows. It's not even like hitting new highs. It's not even average. It's like as low as it gets. Do you have any general thoughts on how to think about sentiment at this point in the cycle and particularly with the US equities?

[00:00:24]I'd agree with you. I mean, one of the reasons we've stayed bullish at Fundstrat is that the market psychology isn't consistent with a market top. I think in general, as you know, when markets are nearing a top, bubbles form because investors become overly confident about continued gains.

[00:00:45]And therefore, when markets decline, sentiment stays strong and then of course, as you know, markets fall on a slope of hope. But that's not what we've seen every time I think the market falls two or three percent, sentiment turns pretty bearish and we see it both in sentiment readings but also in positioning data. In this most recent downturn, Goldman's prime brokerage data showed the level of short increases was at the fastest pace in almost 15 years.

[00:01:12]I think there's a few reasons for that.