Investors' Bearish Sentiment Grows Amid Credit Crunch and Low Stock Weights.

Investor pessimism has surged to the highest level in five months due to concerns over tighter credit conditions and a potential credit crunch for US consumers and businesses. Nearly two-thirds of investors expect a weaker economy in the next 12 months, marking the most bearish survey of the year. The majority of investors see a stagflation scenario as very likely and anticipate the Federal Reserve will approve a final, quarter-percentage-point interest rate hike during its meeting next month. However, fund managers expect central bank policymakers to begin an "easing cycle" in the first quarter of 2024.