The US stock market’s relentless upward trajectory is increasingly being driven by speculative momentum rather than underlying economic fundamentals, according to emerging market analysis.
A growing body of evidence points to an irrational exuberance among investors, with buying activity fueled more by fear of missing out than by solid earnings growth or valuation metrics.
This shift in market dynamics suggests that the current bull run is built on fragile foundations.
As more retail and institutional investors pile into equities on margin, the market becomes more susceptible to sudden reversals.
The danger of a prolonged downward correction is rising, as the disconnect between price action and fundamental value widens.
The phenomenon is not isolated to a single sector but reflects a broader trend across US equities.