Wells Fargo sentiment indicator triggers first sell signal since 2021
Updated
Updated · Barron's · May 5
Wells Fargo sentiment indicator triggers first sell signal since 2021
4 articles · Updated · Barron's · May 5
Equity analyst Ohsung Kwon said the signal has historically preceded an average 2% S&P 500 decline over the following three months.
Kwon still favours owning the Nasdaq 100 because of AI momentum, but recommends hedges as earnings season fades and war risks return to focus.
He also warned markets could face pressure if inflation forces Federal Reserve rate rises later this year, though he does not expect Kevin Warsh to turn notably hawkish.
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