...Complacency runs supreme. This is Where We're At.
...A very crowded room is very likely to experience a quick stampede on a risk event occurring.
...There may not be many chances left to sell into strength. But some still remains hopeful their stocks will return to previous all time highs.
Bullish sentiment is through the roof: US equity futures positioning by investors excluding market-makers just hit a net long of ~$290 billion, the most on record. Since the beginning of the year, net long positioning has more than DOUBLED. This is also twice as high as during the previous peaks seen in early 2018 and 2020. Meanwhile, US households' stock allocation as a percentage of financial assets hit a new record of 41.8% in Q2 2024. Investors are all-in on stocks.
