Barclays Warns S&P 500 May Face 6%-7% Correction Amid Retail Euphoria

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According to Barclays, head of global equity strategy Alex Altmann recently reversed his bullish stance, warning that the S&P 500 may face a 6%-7% pullback in the near term. Altmann attributed the shift to technical overbought conditions, excessive sentiment, and macro headwinds. He noted a critical divergence between retail euphoria and market fundamentals: while borrowing costs have surged and real yields remain elevated, retail participation now exceeds 2021 levels, exerting downward pressure on valuations. The strategist emphasized that when institutional short-sellers disappear from the market, equity performance typically faces headwinds.
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