S&P 500: Are We Nearing a Peak? Key Ratio Says There's Still Room for Growth
On Friday, the S&P 500 and Nasdaq 100 reached new all-time highs, with the S&P 500 hitting 5000 points and heading for a fifth consecutive week of gains, doubling since its pandemic low in March 2020.
It took 719 sessions for the index to rise by 1,000 points, achieving this feat for the 13th time since its inception in 1957, with a remarkable 14 out of the last 15 weeks showing gains, a trend not seen since 1972.
This remarkable rally, which began last year, can be attributed to several factors:
The gold/platinum ratio indicates the number of ounces of gold that can be acquired with one ounce of platinum.
A rising ratio is considered favorable for the stock market, suggesting positive industrial demand and market participants' interest in hedging against uncertainties.
As depicted in the chart, the ratio has been in an uptrend over the last 12 months, supporting the positive trend in the US stock market.
Source: BullionByPost
Furthermore, February tends to favor certain stocks historically. Over the past five Februarys, several companies outperformed the market:
Bullish sentiment, i.e. expectations that stock prices will rise over the next six months, remained at 49% and is at a high level and above its historical average of 37.5%.
Bearish sentiment, i.e. expectations that stock prices will fall over the next six months, declined to 22.6% and remains below its historical average of 31%.
Bitcoin's response to the SEC's approval of new spot ETFs did not align with the expectations of many investors, primarily due to the anticipated demand and influx of new funds not materializing as intensely as projected.
However, there has been a notable shift in this trend, with these ETFs experiencing almost $1.7 billion in inflows.
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