S&P 500 at record high as market in “euphoric mood”

The S&P 500 closed at another record high of 3,329.62 on Friday. It is now up 3.1 percent year-to-date.

As US stocks continue to rally, some think that they have become detached from reality.

“People are getting too optimistic in the short-term,” said Tom Essaye, founder of The Sevens Report. “We keep pricing in all this really good stuff that’s going to happen, but it has not shown up yet.”

“It just seems obvious to me that we’ve had a situation where earnings have gone nowhere and the markets have gone straight up,” said Matt Maley, chief market strategist at Miller Tabak. “I don’t want to call it a bubble yet but it’s moving in that direction.”

“The primary driving force behind the advance is increased liquidity/money flows — massive injections of funds into their systems by central banks,” said David Rosenberg, chief economist and strategist of Rosenberg Research.

“It appears to us that the market is letting itself slide back into a euphoric mood,” said Masanari Takada, macro and quant strategist at Nomura.

“Shorter-term sentiment is extremely optimistic,” said Ned Davis, senior investment analyst and founder of Ned Davis Research.