Investors Are So Bearish on Stocks That the Market Looks Bullish
- VIX futures spread is at a turning point for risk assets
- Put-call ratio near the highest since January amid Fed hedging
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Investors have become so negative about the stock market that Wall Street is starting think a rally may be on the way.
JPMorgan Chase & Co. strategists led by Marko Kolanovic said this week that “investor sentiment is reaching extreme weakness,” meaning a rebound could be on the cards. Meanwhile, a Societe Generale SA sentiment indicator recently dropped to levels last seen during the peak of Covid-19 lockdowns in 2020.