As stocks hit more and more records, there are signs traders may be getting way too euphoric

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As stocks hit more and more records, there are signs traders may be getting way too euphoric.

has already jumped nearly 3% for 2020, rising more than 1% this week to reach fresh record highs. But as the market keeps going up, traders are becoming overly optimistic about equities, data compiled by Ned Davis Research shows.

Ned Davis Research's data is not the only one showing potential euphoria in the market, either. Other experts point out that valuations are at historic highs on some measures while earnings expectations are lackluster at best. Some also note trade tensions between China and the U.S. could flare up once again even after the signing of a phase one agreement. If investors are not careful, they could suffer steep losses after the market's recent rally.

Equities have largely refused to go down in 2020 thus far. Through 12 trading days this year, the S&P 500 has closed lower just four times. The biggest of those four declines came on Jan. 3, when the broad average slid 0.7%.

 

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The big rise before the crash....was called the roaring 20s. This time, it's also the roaring 20s....but not for long.

What goes up, even to record highs, must come down at some point and the stock market is no different. Let's see if the usual Wall St. greed can ruin everything yet again.

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