Markets rise as sentiment hits bullish extreme

Markets were mostly higher on Wednesday.

The S&P 500 rose less than 0.1 percent, the STOXX Europe 600 rose 0.3 percent and the Nikkei 225 rose 0.5 percent.

“The market is on a pause,” said Karyn Cavanaugh, senior market strategist at Voya Financial, but “is likely to continue to grind higher because the economic background is good and earnings are growing, regardless of whether we will get any fiscal stimulus or not.”

However, MarketWatch reports that according to the latest weekly survey by Investors Intelligence, US advisors are at their most bullish on the stock market since 2004.

“Judging by record stock prices, low volatility and extremely bullish sentiment, investors are ignoring a significant rise in the riskiness of their portfolios, leaving them vulnerable to major drawdowns,” said Anora Mahmudova in another MarketWatch report.