S&P 500, Dow and Nasdaq Hit Record Highs as May Consumer Sentiment Falls to a New Low
Updated
Updated · The Motley Fool · Jun 5
S&P 500, Dow and Nasdaq Hit Record Highs as May Consumer Sentiment Falls to a New Low
3 articles · Updated · The Motley Fool · Jun 5
Summary
All three major U.S. indexes reached record highs in recent weeks even as May consumer sentiment sank to a fresh low and individual investors turned more bearish on the next six months.
AAII's latest weekly survey found more Americans pessimistic than optimistic about the market outlook, underscoring a gap between surging asset prices and weak household confidence.
DALBAR data cited in the report showed average investors returned 2.8% annually from 2001 to 2020, versus 7.5% for the S&P 500, largely because poor market timing hurt performance.
The report argues staying invested remains the stronger strategy: Deutsche Bank's 2023 recession call missed a nearly 25% S&P 500 rise, and the index is up more than 740% since January 2000 despite repeated bear markets.