Investors Are Nervous—And That Could Support Stocks

Investors have a sour outlook on U.S. stocks. Contrarians say that is good news for the market. 

Turmoil in the banking sector has dragged fund managers’ enthusiasm for stocks to a 2023 ebb, according to Bank of America’s most recent monthly survey. The stress adds to worries including lingering inflation, higher interest rates and a slowing economy that have driven them to cut their stockholdings to their lowest levels relative to bonds since 2009.