The stock market typically faces volatility in September, especially before contentious elections, yet current returns are exceeding expectations, with the S&P 500 significantly outperforming projections for 2024.
The Federal Reserve's reduction of interest rates and strong corporate earnings contribute positively to the market, suggesting that stock momentum could lead to further gains despite various global challenges.
However, there are concerns about stocks rising too rapidly, echoing a warning from Yardeni Research about a potential 'melt-up', likening it to the irrational exuberance seen in the late 1990s.
Yardeni Research cautions that while market enthusiasm can drive prices higher, it risks shifting from justified optimism to irrational behavior, reminiscent of the 2000 tech bubble.
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