A key market sentiment indicator from Barclays is flashing warning indicators of extreme hypothesis in US shares. The financial institution’s “Fairness Euphoria Indicator” has risen to 10.7%, properly above its historic common of seven% and matching ranges seen throughout earlier market bubbles.
This surge coincides with a number of indicators of frothy market conduct: ARK Innovation ETF posting historic positive aspects, SPAC listings exceeding the previous two years mixed, and risky sectors like Bitcoin shares (+78%), quantum computing (+69%), and meme shares (+44%) recording large second-quarter rallies.
Whereas optimism stems from potential commerce offers and Fed fee cuts, market specialists warning that fundamentals have been deserted in favor of narrative-driven hypothesis, establishing potential for important volatility forward.
