Bearish Investor Sentiment Could Spark Bull Rally, Says Fundstrat

Fundstrat researcher Tom Lee says positive inflation news can overturn prevailing bearish market sentiments. An AAII survey says about 40% of institutional investors expect stocks to decline over the next six months despite bullish market indicators.  Short-Term Sentiment is Contrarian The AAII sentiment survey is contrarian, meaning that investors have earned higher-than-expected returns after periods of low optimism. Sentiment surveys often inform short-term trading. Lee believes that cooling inflation aided by falling housing costs should ease investor concerns. He predicted that the S&P 500 would rise 14% in the next year rather than fall 15% as investors expect.  Stocks seesawed