Posted 3/12/2024, 2:18:00 PM
Record Highs Fuel Investor Euphoria, Raising Odds of Market Correction
- Soaring stock market optimism makes a correction likely according to Ned Davis Research
- Major stock indexes hitting record highs has created a "sugar high" among investors
- Widespread investor optimism means markets are vulnerable to earnings letdowns and a potential correction
- First time in 3 years nearly a third of 47 All Country World Index markets are within 5% of record highs
- While a correction seems probable in the near future, Ned Davis Research doesn't expect a bear market due to a lack of severe inflation or recession signals