Investor sentiment in the U.S. stock market is becoming more optimistic — but it hasn't reached the stage of "recklessness" yet
• The percentage of optimists (bullish sentiment) according to AAII rose from 35.1% to 45% — indicating increasing optimism as the S&P 500 index reaches new highs.
• However, this percentage is still below the "bubble" or "excessive euphoria" zone, which typically starts at over 50%.
→ For example, last July, when the percentage hit 52.7%, it was followed by a 9% market decline.
• So far, investor positions do not seem crowded or excessive, but if the percentage exceeds 52%, it may be wise to exercise caution.
🔍 The most important question:
Can the S&P 500 reach 6500 or even 7000 before sentiment enters the danger zone?