TechFlow, April 28 — According to The Kobeissi Letter analysis of a new University of Michigan survey, American consumers’ pessimism about the stock market has reached an all-time high. A record 12% of Americans believe there is absolutely no chance of the market rising over the next 12 months—a figure that has tripled in the past two months and exceeds peak levels seen during market bottoms in 2022, 2009, and again in 2022.
Meanwhile, 44.5% of consumers expect the stock market to decline over the coming year—the highest level since 2022 and the second-highest in 14 years—indicating exceptionally rare and extreme market pessimism.
Analysts note that the sharp drop in consumer confidence stems from multiple factors, including concerns about economic recession, inflationary pressures, and unstable trade relations. This widespread pessimism could prompt investors to pull capital out of equities, reduce market liquidity, shift funds into defensive sectors or cash holdings, and further intensify market volatility.
