Investor sentiment has shifted significantly, as evidenced by the latest data from the American Association of Individual Investors (AAII) and other sentiment indices. The AAII survey reported a 12 percentage point increase in bearish investors over the past week, marking the largest rise since November 2022. This surge in bearish sentiment is mirrored by a drop in retail sentiment, which fell from a 1.78-to-1 bull-to-bear ratio to 1.08-to-1. Additionally, the Investors Intelligence Sentiment Index saw a 17% decline in bullish sentiment over two weeks, the most substantial drop since the October 1987 crash. The stock/bond ratio has also plunged below -3.5, a rare event that has occurred only 14 times since 1966, indicating extreme fear among investors. Historically, such panic-driven selloffs have often reversed, with the S&P 500 typically recovering in the following months. Furthermore, S&P 500 sector correlations to the index have reached levels not seen in over six years, suggesting that equity investor confidence in the macro backdrop was overly high.