Even as global equities reach record highs, investor confidence remains subdued amid structural concerns over inflation persistence, income inequality, and automation. Surveys show households outside the top decile exhibit weakening financial optimism. Fund managers report hedging against policy and regulatory risk, particularly surrounding AI employment disruption and rising corporate leverage. Analysts at Blackstone and JPMorgan highlight that market optimism contrasts with latent fragility in consumer sentiment, implying that volatility could rise if policy or earnings surprises materialize.