Extreme pessimism often preceded double-digit returns for equities
Sources: Capital Group, Bloomberg, S&P Global, University of Michigan. Consumer sentiment bottoms are reflected by cycle lows for the University of Michigan's Consumer Sentiment Index, which is a monthly survey-based index that measures U.S. consumers’ views on current economic conditions and expectations for the future. It is derived from household responses on personal finances, business conditions, and buying conditions, and is indexed to a base year of 1966 = 100. Returns reflect total returns, with start dates based on the end of each month listed for specific lows in sentiment. As of March 31, 2026.
Past results are not predictive of results in future periods.
The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries