Stocks have been on a wild ride lately. The S&P 500 ETF (SPY) is now sitting exactly 20% above its April lows. I say “exactly” because that number matters, 20% is just enough to make investors feel like the bear market is over. Like it’s safe to dive back in. Dare I say, it’s giving off serious FOMO vibes.
But that’s a dangerous place to be right now. Very little has fundamentally changed to justify this kind of optimism.
Two main forces have fueled the rally and the sharp sentiment shift from “Extreme Fear” to “Greed.”
This post originally appeared at Money Morning.