More traders turn bullish in first quarter even as market shows signs of fatigue, Schwab survey says
Published On Feb 25, 2025, 2:12 PM
A recent survey by Schwab reveals that 51% of traders are bullish about the stock market, with a notable increase in optimism among young traders, particularly those under 40. Despite concerns over market overvaluation and economic slowdown, many traders plan to invest more in stocks this quarter, especially in energy, tech, finance, and utilities sectors. The survey indicates a decrease in recession fears among traders, with only a third considering it somewhat likely, down from 54%. This raises questions on market sustainability amidst heightened bullish sentiment, which could suggest potential market corrections.
Stock Forecasts
XLF
Positive
Given the current bullish sentiment despite potential overvaluation, traders may continue to buy into the market in the short term, especially in favored sectors. However, caution is advisable as overzealous optimism can lead to corrections. A focus on sectors like energy and tech could yield positive returns.
QQQ
Neutral
The ETFs focused on the technology sector, like those tracking the Nasdaq, may experience fluctuations due to recent bearish trends in the index. It's critical to monitor upcoming economic data that might affect sentiment negatively.
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