The article highlights a surprising uptick in economic optimism with the latest jobs report exceeding expectations. The added jobs and investor confidence reflect a belief in continued growth, as evidenced by the S&P 500 Cyclical/Defensive Ratio reaching an all-time high. However, caution is advised with warnings from Bank of America about potential sell signals and the risk of investors becoming overly bullish, emphasizing the complexity of the economic landscape amid positivity.
"The latest good news was May's better-than-expected jobs report. The 139,000 jobs added were more than the 126,000 economists had expected."
"The market believes the US economy will keep growing and is trading like there's 'no recession risk whatsoever.'"
"The S&P 500 Cyclical/Defensive Ratio hit an all-time high of 1.19, meaning cyclical stocks have a 19% edge over defensive ones."
"Bank of America warned of two big sell signals in stocks that are close to flashing...suggesting investors could be getting too bullish for their own good."
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