Tom Lee, the chief investment officer of Fundstrat Capital, has labeled the 2025 market “the most hated V-shaped rally,” arguing that investors are gripped by a level of pessimism typically seen only during severe bear markets, despite hopes of the S&P 500 hitting the 7,000 mark by year-end.

Investor Pessimism In 2025 Mirrors Previous Bear Markets

Lee pointed to persistent negative investor sentiment as a key anomaly in an update published on Fundstrat’s YouTube channel on Oct. 21. He highlighted recent AAII survey data showing bears outnumbering bulls, a trend that has defined the year.

“The last three times we had negative sentiment [this low] was 1990, 2008 and 2022. Those were all bear market years,” Lee said.

He contrasted this deep-seated fear with the market’s actual performance. “Investors are acting like we’re in a bear market, yet the market’s up 13% year to date,” Lee stated. “So, I would call that the most hated V-shaped rally.”