Latest Look at Sentiment

There are an increasing number of ways to evaluate investor sentiment. Today, a number of data points seem to be aligning and point to a large amount of negative sentiment.

The chart below shows that nearly 95% of investors surveyed expect the S&P 500 to finish 2023 no higher than 4000. Based on where the S&P is currently trading would conclude that those 95% are expecting a minimum of a 3% decline from here and in most cases a much larger decline.

Sentiment is best used when at extremes and despite the huge rally in stocks over the past six months investors are extremely skeptical. Could this be a time to lean bullish despite all the negative headlines?