Stock Market Faces Uncertainty as Wall of Worry Crumbles
The recent rally in the U.S. stock market is likely a counter-trend advance within a longer-term downtrend, as many on Wall Street have turned bullish too quickly. Market timers' sentiment has become significantly more positive than historical analysis would suggest, with exposure levels jumping far beyond expectations. This excessive optimism among market timers is a reason why contrarian investors are not expecting much from the current rally.