Level of IPO filings reveal dour investor sentiment

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WHAT THE LEVEL OF IPO ACTIVITY IS INDICATING: Equity market optimism and speculation accompany a high level of IPO activity, and the reverse is true. Just look at the levels in the late 2008 bear market and the post-pandemic bull market of 2021.  IPO activity today is at a post-pandemic low.

Another indicator of market sentiment can be seen in the performance of an ETF focused on IPOs. It is close to its all-time low.

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