Marquee QuickPoll: Large Shift Lower in Market Sentiment
After an extraordinarily bullish start to the year, market participants may be reining in their enthusiasm for risky assets. Nearly one-third of respondents to Goldman Sachs' March QuickPoll described market sentiment as bearish in March – the highest bearish reading since the U.S. presidential election. Among the worries on investors' minds: widening credit spreads and questions over the Federal Reserve's path for monetary tightening, with investors expecting the Fed to continue to push rates higher despite the risk of equities selling off. "This is a reversal of the relationship between equities and rates over the last 20 years," said Oscar Ostlund, head of New York Market Strats in the Securities Division. "So looking forward, this may only be one data point, but it could be an important one if this is an early sign of a completely new paradigm."