According to The Kobeissi Letter, a University of Michigan survey shows a record 12% of Americans now believe there is no chance the stock market will increase over the next 12 months, a figure that has tripled in just two months (source: The Kobeissi Letter, April 28, 2025). This rising pessimism, which surpasses previous survey records, signals growing bearish sentiment among retail investors. For traders, this shift could indicate increased volatility and potential downward pressure on equities as sentiment-driven selling or defensive positioning may intensify. Monitoring sentiment indicators and market breadth becomes critical for managing risk and identifying contrarian opportunities as investor outlook deteriorates.

According to The Kobeissi Letter, a recent University of Michigan (UMich) survey shows that a record 12% of US consumers see no chance of stock market gains over the next 12 months. This percentage has tripled in just two months, marking an all-time high in consumer pessimism. For traders, this surge in bearish sentiment could signal increased volatility and potential short-term downside pressure on US equities as retail investor confidence wanes. Source: The Kobeissi Letter via Twitter, April 28, 2025.