As my good friend Brett Eversole recently wrote in Daily Wealth, “You can feel it in the air when a bull market hits a fever pitch…” And boy, can you feel it right now!
But here’s the thing – just because your barber is giving you stock tips doesn’t mean this bull run is about to end. In fact, as Brett points out, “Mom-and-pop investors are buying stocks. Their stock allocations just notched above 70%. It’s the highest level we’ve seen since the end of 2021… and close to the highest level of the past decade.”
Now, you might think rising stock allocations from everyday investors is a red flag. But as the longer-term chart shows, we’re nowhere near the euphoric levels of the late 90s bull market:
As Brett explains, “The 1990s readings near 80% were also significantly higher than where we are today. We first saw a reading above 70% in 1996… And the market took years to peak from there. Stocks even soared for more than two years after the first 75% reading in 1998.”
So yes, market sentiment is improving as stocks march higher. But we are far from the manic euphoria that signals a true market top. There is still plenty of skepticism and worry – which means there is still plenty of room for this bull to run!
But here’s why this matters to YOU. As Brett puts it, “In short, mom-and-pop investors are buying. They own more stocks in their portfolios than they have in years. But this bullish attitude has a long way to go before it’s a cause for concern.”
Translation? This is your green light to put money to work in the market NOW, while the getting is still good. Don’t be left on the sidelines while everyday investors ride this bull market to new highs. The time to act is now.
So what’s your next move? As always, focus on quality. Stick to market-leading stocks with strong fundamentals and undeniable momentum. The kind of stocks I’m sharing with my premium readers every single day.
But don’t wait too long – windows of opportunity like this don’t stay open forever. It’s time to get off the fence and get invested. Your future self will thank you.
Keep your eye on the ball,
Market Monitor
Recommended Reading:
- Don’t Make My Friend’s Mistake – If you’re waiting for a crash before buying in, you’ll miss out on big gains. We’re in a secular bull market, so it’s time to get invested.
- Why You Should Be Invested Today – Sitting in cash won’t grow your wealth. The stock market is still the best way to build your retirement nest egg.
