Sentiment divergence worth noting: $SPY just printed new highs, yet positioning and surveys show investors are bearish heading into earnings.
This is classic contrarian territory. When everyone's nervous at the top, there's often less downside than the crowd expects. Markets climb walls of worry.
Doesn't mean valuations are reasonable or that fundamentals justify current multiples. Just means the setup isn't crowded with euphoria yet. Watch how earnings actually come in versus these lowered expectations.
This is classic contrarian territory. When everyone's nervous at the top, there's often less downside than the crowd expects. Markets climb walls of worry.
Doesn't mean valuations are reasonable or that fundamentals justify current multiples. Just means the setup isn't crowded with euphoria yet. Watch how earnings actually come in versus these lowered expectations.