Young traders believe that the bull market in US stocks still has room to grow and plan to continue investing more funds.

According to the latest quarterly customer survey by Jiaxin Wealth Management, despite the high valuation of the current stock market, this has not stopped traders' optimistic sentiment. More and more investors are betting that the bull market still has room to move higher, and market bullish sentiment continues to strengthen. The survey results show that 51% of traders are bullish, far exceeding the 34% who are bearish. Especially among traders under the age of 40, the bullish proportion has jumped to 59%, a significant increase compared to 47% in the fourth quarter of last year. It is worth noting that even though two-thirds of traders believe the market valuation is already high, they still believe the bull market has room to move higher. James Kostulias, head of trading services at Jiaxin Wealth Management, said, "Traders generally believe that there is a certain bubble in the market, but overall, they are still optimistic about the future trend." He added, "More than half of the traders plan to continue investing more funds in the stock market in the first quarter." Although investors' bullish sentiment is usually interpreted as a positive signal for the market, when the market is overly optimistic, it can also be a contrarian indicator. Over the past two years, the S&P 500 index has risen by more than 50%, experiencing a strong bull market. However, with concerns about economic slowdown and market volatility brought about by rapid policy adjustments by the new government, the upward momentum of the stock market has recently weakened. As of now, the S&P 500 index has only risen by 1.3% year-to-date, and the Nasdaq Composite Index, which has a higher proportion of technology stocks, even fell into negative territory in 2025. In terms of industry, traders are most optimistic about the energy, technology, financial, and utility sectors. These sectors typically benefit from the potential relaxation of regulatory policies by the Trump administration, so the market is optimistic about their growth prospects. In addition to the rising bullish sentiment, the survey also found that traders' concerns about a U.S. economic recession have significantly decreased. Only one-third of respondents believe that the U.S. may fall into a recession in the short term, compared to 54% who held the same view in the previous quarter. Meanwhile, traders' concerns about inflation accelerating again are also low. The survey shows that two-thirds of respondents believe that price pressures will remain stable and will not see a significant rebound.