Here is a big reason why stock markets are so strong

  • Long and highly leveraged
market update stock markets
Call volumes

This chart really gives away the game.

Option trading started to go mainstreet after covid and it's gone fully parabolic in the last few months. Yes, it's a worrisome sign for the bulls but there is also a secular story here of option buying that's expanding multiples and exaggerating the market moves of hot stocks.

I'd argue this chart matters more than an chart of P/Es, at least in the short term.

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