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Stock bears are becoming extinct. Is it time to worry?

It’s that time of year when Wall Street soothsayers look ahead 12 months and try to divine the path of US stocks. Last year at this time, no one writing for a major sell-side firm thought stocks would perform anywhere near as well as they did, up 23 per cent in 2024.

The median prognosticator thought we would probably move sideways, and a few bears were calling for a meaningful sell-off. The same was basically true of the forecasts the year before that. In retrospect, that failure of imagination almost looked like a contrarian bullish sign.

Source: https://www.afr.com/markets/equity-markets/stock-bears-are-becoming-extinct-is-it-time-to-worry-20250103-p5l1tb