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Analysis: US consumer stock market confidence falls to a historic low, risk aversion sentiment rises.
According to a report from ShenChao TechFlow on April 28, analysis by The Kobeissi Letter shows that the latest survey from the University of Michigan indicates that American consumers' pessimism about the stock market has reached a historical high. A record 12% of Americans believe there is no possibility of a rise in the stock market over the next 12 months. This percentage has tripled in the past two months, surpassing the peak levels during the market bottoms of 2022, 2009, and 2022.
At the same time, 44.5% of consumers expect the stock market to decline in the coming year, reaching the highest level since 2022 and the second highest level in 14 years. Market sentiment is rarely in a state of extreme pessimism.
Analysts point out that the sharp decline in consumer confidence is related to multiple factors, including concerns about economic recession, inflationary pressures, and unstable trade relations. This pessimistic sentiment may lead investors to withdraw from the stock market, weaken market liquidity, and shift funds to defensive sectors or cash holdings, further exacerbating market volatility.