The market is actually up this month, but bearish bets are building fast. A measure of sentiment from the options markets shows that bets on falling stock prices have sharply outpaced those expecting prices to rise.
That might sound like a reason to run away from stocks. But oddly, market analysts usually see extreme levels of bearishness in investor sentiment as good news for stocks.
Signs of slowing inflation — and expectations the Fed could slow rate hikes as a result — are what’s given the S&P 500 a lift lately.