Barclays warns retail investors of a potential 6-7% correction in the S&P 500, shifting from its previously strong bullish stance

Odaily Odaily News The shift of the most staunch bulls often serves as the market's most noteworthy signal. Alex Altmann, Barclays' global head of equity strategy, who has repeatedly called for "staying invested" during market volatility and precisely timed rebound rallies, has recently issued a rare cautious warning.

In his latest market assessment, Alex Altmann stated that due to multiple pressures from technical overbought conditions, excessive sentiment, and a challenging macro environment, he has turned bearish on the short-term outlook for U.S. stocks. He believes that the U.S. stock market is currently in the "middle of the mountain" of a structural correction, with the biggest concern being the significant disconnect between retail investor sentiment and macroeconomic reality. He compared it to the speculative frenzy of 2021: back then, during the stock market mania, real yields were negative, and cheap money flooded the market. Now, however, financing costs have surged significantly, and real yields remain high, creating evident pressure on stock valuations.

Yet, the level of retail investor frenzy has even surpassed that of 2021. Alex Altmann stated bluntly: "When you can't find a single institutional bear in the market, the return curve for the S&P 500 has often already reached its peak."