Individual investors have never been more worried about a U.S. stock market crash. That’s great news. This counterintuitive reaction is because investor sentiment is a contrarian indicator. So it would be more worrying if investors thought there was a low probability of a crash.
This upbeat news will be particularly welcome after the Dow Jones Industrial Average plunged 650 points, or 2.3% on Oct. 26 — the worst one-day decline since early September.