34% of investors expect significant drop in the next 6 months

The U.S. individual investors are getting increasingly nervous about the stock market as factors like inflation, supply chain constraints, rising rates, and the pandemic continue to paint a rather gloomy picture of the future.

Findings of the recent survey by Investopedia

Investors have not been this “cautious” on the stock market since April of 2020, when the pandemic was at its peak, Investopedia discovered in its latest survey. Disclosing the results of the survey on CNBC’s “Worldwide Exchange”, the New York-based online platform’s editor-in-chief Caleb Silver said:

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About 45% of our readers are somewhat to extremely worried about the stock market right now. 34% expect a significant drop in the next six months. 25% are investing less than they were in May. And many are moving to cash.

Among the reasons cited for investment anxiety, supply chain issues took the lead with 53%, followed by government spending and inflation at 43% and 41%, respectively. Only 21% of the respondents picked the Coronavirus crisis as their reason for caution.

Silver explains the recent gain in SPX

Despite concerns, the benchmark S&P 500 index is in the “green” this month, trading only about 1.0% down now from its record high. Explain the recent move up, Silver said:

It’s because of some good news in the last week. You’ve got travel restrictions being dropped here in the U.S., and the FDA panel also recommended approval for additional vaccines.

The recent rally is more in line with Goldman Sachs’ David Kostin, who said last week that the SPX could climb by 10% before the end of the year.