More traders turns bulish in first quarter even as Market Shows Signs of Fatigue, Schwab Surveyy Says

An excursive stock market did not prevent traders from getting more bullish as investors increasingly bet

The bulls continue to outnumber the bears among traders 51% to 34%, according to schwab’s survey, which polled 1,040 active traders last month. Young traders under the age of 40 especially showed a spike in optimism, with bullishness jumping to 59%. That compares to 47% in the fourth Quarter. The positive sentiment came even as two-thirds of the traders believe the market is overvalued, the survey said.

“It’s clear that the majority of traders believe there’s some froth in the market but on balance Charles Schwab. “More than half of traders plan to move additional money into stocks in Q1,” Kostulias Added.

While bulishness indicates positive views on the market, it can also be seen as a contrary indicator when there are signs of excess.

After a booming two-yar period in which the S & p 500 Climbed more than 50%, The Momentum has Slowed as of Late with Rising Concerns about An Economic Slowdown and Heightened Volativity from Rapid Policy Changes from the New Administration. The equity benchmark is only up 1.3% on the year, who the tech-heavy Nasdaq composite Has Dipped Into Negative Territory for 2025.

In terms of sector, traders are most bully, tech, finance and utilities. These sectors are typical beneficiations under the trump administration due to potential deregulation.

The survey also detected a significant Drop in the number of traders who believe a recession will occur in the us only a third of the results called Quarter.

The majority of traders also did not see a reaction in inflation, with two-thirds of them seeing price pressures holding steady.