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Investing.com -- A recent poll by BCA Research reveals a shift in investor sentiment, with a growing bearish outlook on the U.S. economy.

According to BCA Research, investors are increasingly skeptical about the market's ability to sustain its recent gains.

"Only a sliver of respondents expect the market to continue to rally into year-end," the note states.

BCA's findings indicate that while many investors hold cash reserves that could be deployed if the economic outlook improves, there is a noticeable decline in enthusiasm for high-profile stocks.

The "Magnificent Seven"—a group of leading tech stocks—are said to be particularly affected as the BCA poll suggests, "Only a few respondents would buy them today," suggesting a loss of confidence in these once-favored equities.

The Federal Reserve's recent aggressive easing policies are seen as necessary but insufficient to completely avert a downturn.

"Long and variable lags will get in the way of preventing a downturn," BCA Research explains. "While a soft landing is somewhat more likely now, this outcome is contingent on a great deal of luck," they add.

"However, continued productivity improvement, the revival of 'animal spirits, more consumer spending, and improving corporate margins could bring," says BCA.

Despite strong projected earnings growth, the firm says the outlook remains uncertain.

The research firm warns that "earnings often come down only after the start of a recession," pointing out that the majority of small businesses are already experiencing sales and earnings contractions.

This suggests that the broader economic conditions may not align with the optimistic earnings forecasts seen in some sectors, according to BCA.

Additionally, BCA Research says that the investment outlook is clouded by economic risks and election uncertainties.

"The outlook for equities is compounded by mounting economic risks and election uncertainty. Overweight Pharma, Utilities, and Telecoms, underweight Consumer Discretionary and Technology," they conclude.

This content was originally published on http://Investing.com