The S&P 500 broke above 3300 for the first time this week. How high can it go? I think higher.
One primary reason is that many investors have missed out on this rally and money is still sitting on the sidelines. Last year the average hedge fund performance was only 6.97%, while the S&P 500 was up 29%. Much of that money is still trying to buy into this market.
Optimism is starting to rise for individual investors but their bullish sentiment is still way below exuberant levels. During the January 2018 peak, bullish sentiment hit 60%, today it’s just above 40%.
I think this Monkey can climb higher.