S&P 500 Rally Faces Risks Despite Upbeat Investor Sentiment
• The S&P 500 has seen positive returns in 16 out of the last 18 weeks, a trend not seen since the 1970s, making investors overly bullish.
• Despite the bullish momentum, big players like Apple, Alphabet, and Tesla are not actively participating as usual.
• March has historically been one of the best months for stock market gains, but the excessive bullish sentiment poses risks.
• The S&P 500 typically sees declines of at least 5% three times a year on average, but it's been over four months since the last significant pullback.
• Whenever the Nasdaq vs gold ratio has favored gold, the Nasdaq has experienced a significant pullback soon after.