Barclays reverses its long-standing bullish stance, warning retail investors that the S&P 500 index could face a total correction of 6%-7%

Odaily Planet Daily News The turning of the most steadfast bulls is often the most noteworthy signal in the market. Alex Altmann, Global Head of Equity Strategy at Barclays, who repeatedly called for "holding stocks steady" amid market fluctuations and precisely timed the rebound rhythm, has recently issued a rare cautionary warning.

In his latest market assessment, Alex Altmann stated that due to multiple pressures from technical overbought conditions, excessive sentiment, and macroeconomic headwinds, he has turned bearish on the short-term outlook for US stocks. He believes that the current US stock market is in the "middle of the hill" of a structural correction, and the biggest concern for the market now lies in the severe disconnect between retail investor sentiment and macroeconomic reality. He compared this to the speculative frenzy of 2021: during that year's US stock market mania, real yields were negative, and cheap money flooded the market. Today, however, financing costs have surged dramatically, real yields remain high, which has put significant downward pressure on stock valuations.

Yet, the fervor among retail investors now surpasses even that of 2021. Alex Altmann stated bluntly: "When the market cannot find a single institutional bear, the return curve for the S&P 500 index has often already reached its end."