According to a report by Deep Tide TechFlow, a survey by the University of Michigan shows that American consumers' pessimism about the stock market has reached record levels, with 12% believing there is no possibility of a market increase in the next 12 months. This proportion has tripled in two months, surpassing the levels seen during the market bottoms of 2022 and 2009.
At the same time, 44.5% of consumers expect the stock market to decline in the coming year, the highest level since 2022 and the second highest in 14 years. Market sentiment is extremely pessimistic.
Analysts point out that the decline in consumer confidence is related to economic recession, inflationary pressures, and unstable trade relations, which could lead to investors withdrawing funds, weakening market liquidity, and shifting capital towards defensive sectors or cash holdings, exacerbating market volatility.