October 2, 2022
Chicago 12, Melborne City, USA
Finance

Most Americans were feeling gloomy even before Thursday’s dramatic dive in stocks — and now they fear a prolonged bear market

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Within hours, the promising signs from the stock market rally have turned into pessimism, even panic.

For retail investors trying to get their feet in a turbulent moment, the deep downhill on Thursday is exactly what they don’t want. But what they knew could happen all the time.

A day after markets closed sharply on Wednesday on news of the Federal Reserve’s 50-point point interest rate hike – and there is no prospect of a sharp rise in the future – they are barreling on Thursday.

More than half the people say the stock market is heading for a recession in the next six months.


– Investor sentiment from the American Association of Individual Investors

Afternoon Business, Dow Jones Industrial Average DJIA,
-3.28%
Over 1,000 points or 2.9% decreased. And that bunch is the best. S&P 500 SPX,
-3.68%
Nasdaq Composite Comp, down 3.3%
-5.18%
Decreased by more than 4.8%. According to a money manager, it looks like a “violent exposure of a crowded location”.

So the depression has increased and the market is down. According to recent polls and sentiment trackers, retail investors are expected to do just that.

For example, more than half the people (53%) say that according to the recently read investors’ attitude of the American Association of Individual Investors, the market is going downhill for the next six months.

The results for the seven-day period, which ended on Wednesday, closed at about 60% a week ago from those who believed a bear market was ahead. But those 53% figures are still above the 30.5% average who think the market is heading towards the bear den.

About 56% of people are worried about market crashes, and 43% are too nervous to invest money in the market.


– First Quarterly Repeat Market-Idea Poll from Allianz Life Insurance Company

Meanwhile, according to Allianz Life Insurance Company’s first quarterly revised market opinion poll, 56% of people are worried about a market crash.

According to the survey, four out of ten participants (43%) said they were too nervous to put money in the market now. This is an increase of nine percentage points from the same point last year.

Eight out of ten say they are preparing for unrest by the end of the year. According to a survey of sentiment by UBS Investors published on Wednesday, households with high net worth said that chopines are particularly bad, with 51% saying the market is more volatile than usual.

Another survey on retail investor sentiment, this time from Charles Schwab Corporation SCHW,
-2.70%,
Also reflects a concerned worldview. In the fourth quarter of 2021, when more than half of clients were investing in fixed stocks, less than 40% planned to buy separate stocks in the first quarter of 2022, according to February results.

Four out of ten (44%) had a bearish view, nine percentage points higher than the same point last year.

Bears are coming, at least many think. The question is whether the recession is coming. (“I think we have a good chance of a soft or soft landing,” Federal Reserve Chairman Jerome Powell told a news conference Wednesday after announcing the rate hike.)

Still financial advisors warn against drastic changes in a portfolio. “It’s time to dump her and move on. You shouldn’t change wholesale, ”Scott Bishop, executive director of asset solutions at Avidian Wealth Solutions in Houston, Texas, previously told MarketWatch.

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