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 shift of the most steadfast bulls is often the market signal most worthy of attention. Alex Altmann, Barclays' global head of equity strategy, who has repeatedly urged investors to "stay put" during market volatility and precisely timed rebound rallies, has recently issued a rare cautionary warning.

In his latest market analysis, Alex Altmann stated that due to multiple pressures from technical overbought conditions, excessive sentiment overheating, and macroeconomic headwinds, he has turned bearish on the short-term outlook for U.S. stocks. He believes that the current U.S. stock market is in the "middle of a mountain" of a structural correction, with the biggest concern being a serious disconnect between retail investor sentiment and macro reality. He compared this to the speculative frenzy of 2021: back then, when the U.S. stock market was booming, real yields were negative and cheap money flooded the market. Today, however, financing costs have surged significantly, real yields remain high, creating clear compression on stock valuations.

Yet, retail investor fervor has even exceeded 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 run its course."