Will the U.S. stock market fail in 6 months?

The American Association of Individual Investors released the results of a survey, with a whopping 42% of respondents expecting stock prices to fall in the next six months, the most pessimistic data in a year.

Goldman Sachs also pointed out that since April, half of the momentum in the S&P 500's gains has come from the five most heavily weighted stocks.

The S&P 500 is up 24% this year, with a third coming from Microsoft (MSFT-US), NVIDIA (NVDA-US), Apple (AAPL-US), Google (GOOGL-US) and Tesla (TSLA) -US). The market is returning to the most favored trade of the past decade, a focus on large, growing, and profitable tech stocks, citing the safety of strong balance sheets, especially as the market battles a series of weakening bullish sentiment. news.

Hedge fund Axonic Capital also expects the S&P 500 to be more volatile next year, and if there is any turmoil in these big tech stocks, there will be little mainstream support for bulls.

There's a lot of noise in the general economy right now that's making the market anxious, and in addition to the rise of the Omicron virus, the pressure on the Federal Reserve has also sent a hawkish signal from the Federal Reserve, driving investors into defensive stocks such as consumer staples and utilities.