Stocks' Sugar High: A Market That's as Unpredictable as Ever The S&P 500's recent rebound to new records has been a welcome respite for investors, but it raises important questions about the sustainability of these gains.
The market's history is replete with examples of investors getting caught up in rising markets, only to see their fortunes reversed when the tide turns.
One reason investors should be cautious is that the highs achieved by momentum stocks in the second quarter came from massive leverage and crowding, rather than pure fundamental improvement.