Even Eeyore would join this stockmarket party
US investors are the most bullish than they have been in two decades, with America’s S&P 500 reaching a new-all time high last Friday.

US investors are the most bullish than they have been in two decades, report Rita Nazareth and Claire Ballentine for Bloomberg. The CBOE Equity Put/Call Ratio, which measures trading volume in put and call options (bearish and bullish bets respectively) recently hit its lowest level since July 2000. America’s S&P 500 reached a new-all time high last Friday, while early this week US markets were cheered by signs that congress could be set to approve a $908bn stimulus package.
The S&P 500’s recent high came on the back of employment data showing that America’s rapid jobs recovery slowed last month. Still, US unemployment hit nearly 15% earlier this year, but is now down to 6.7%.
Analysts forecast that S&P 500 earnings per share will rebound by 22% next year, following this year’s 15% fall, says Jon Sindreu in The Wall Street Journal. That looks “reasonable”; the year after the 2009 crash saw profit growth of 40%. The worry is for subsequent years. About 48% of S&P Composite 1500 companies are trading on a higher valuation than they did at the end of 2019. A V-shaped recovery next year is one thing; the idea that America Inc. will be more dynamic in 2022 than it was in 2019 looks much less sure.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
November’s euphoria reminded me of the dotcom boom, says Tom Stevenson in the Daily Telegraph. Europe’s markets gained 15% last month, giving a younger generation the closest thing to a “full-blooded melt-up” they have ever seen. Shares are high on a “cocktail of stimulants” from massive fiscal and monetary support to vaccine news. “It’s never a good sign” when there is almost no one questioning the bull story, but so contagious has the optimism become that even “Eeyore would be tempted to join in the fun”.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
The five insurance policies you should have
Some insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency
-
Is Donald Trump putting the US dollar in danger?
Donald Trump's administration sees one of its greatest advantages – the US dollar – as a burden. Gold is the obvious beneficiary, says Cris Sholto Heaton.
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
US and China reach a ceasefire in their trade war after talks in London
The US and China's trading relationship – the most important one in the global economy – is back on track. Will the truce last?
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
The costly myth of “sell in May”
Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King
-
Who’s driving Tesla?
As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.
-
Investment opportunities in the world of Coca-Cola
There is far more to Coca-Cola than just one giant firm. The companies that bottle and distribute the ubiquitous soft drink are promising investments in their own right.
-
Streaming services are the new magic money tree for investors – but for how long?
Opinion Streaming services are in full bloom and laden with profits, but beware – winter is coming, warns Matthew Lynn
-
'Pension funds shouldn't be pushed into private equity sector'
Opinion The private-equity party is over, so don't push pension funds into the sector, says Merryn Somerset Webb.