One of the three top reasons for relationship difficulties is UNREALISTIC EXPECTATIONS. With that in mind, read what our current Elliott Wave Financial Forecast says about investors’ expectations in the stock market:
In May, EWFF showed the chart below of the Conference Board Consumer Confidence survey, which asks consumers whether they expect stock prices to increase over the year ahead. In October, the percentage rose to 51.4%, the highest in the 37 years of Conference Board monthly polling:
The general public’s consensus of a rising stock market has more than doubled over the past two years, accelerating higher starting in October 2023. The intensity of the rise suggests a severe case of FOMO (fear of missing out). The run to a new record carried the five-month average to an all-time high of 49.5%, well above the prior five-month extreme of 44.9% in January 2018 (not shown), which led to a net decline over the ensuing 26 months. In the history of the survey, no other reading comes close. The public is euphoric for stocks. Why are so many investors willing to ignore the message of past sentiment extremes? They are herding non-rationally to express a historically positive financial mood. Invariably, they commit to it in the greatest number at the worst possible moment.
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