Is a stock market correction coming? Most Americans think so - USA Today
A recent Allianz Life survey indicates that 74% of Americans believe the current stock market highs are unsustainable and fear a correction. Concerns are driven by high valuations, AI bubble fears, and geopolitical instability.
Why it matters
Widespread investor anxiety can lead to market volatility and shifts in household financial planning, impacting the broader economy.
Hear this story Three in four Americans believe recent stock gains are “unsustainable” and think the market may be headed for a correction, according to a new survey.
The S&P 500 is up about 13% on the year and trading near its record high . Stocks are surging on enthusiasm over the promise of AI, and on the strength of corporate sales and earnings.
But there is persistent talk of an AI bubble : an irrational runup in the prices of tech stocks fueled by unrealistic expectations for artificial intelligence.
Stock traders worry, too, about soaring oil and gas prices in the lengthening Iran war. Those fears pushed two major stock indexes into correction territory in March, when both the Dow Jones and the Nasdaq dropped 10% below recent highs.
Stocks are historically overpriced. A common yardstick, the cyclically adjusted price-to-earnings (CAPE) ratio, stands at 41.07 for the S&P 500.
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