When markets are up, but people are still scared or anxious, it typically indicates the “Wall of Worry” phase in the market cycle. This phase is characterized by skepticism and caution, despite rising prices. Investors are often hesitant, citing concerns like economic instability, geopolitical risks, or market volatility.
Key Characteristics:
• Markets are climbing, but sentiment is cautious or negative.
• News headlines focus on risks rather than optimism.
• Many investors are still on the sidelines or under-invested.
• Fear of a crash or correction is prevalent.
This often happens during the “Early to Mid Bull Market” stage, where smart money and institutional investors accumulate positions while general sentiment remains cautious.
