Part 5/9:
Federal Reserve's comments about the possibility of future rate cuts, which caused a repricing of expectations. Notably, Jerome Powell stated that a rate cut in December is not a certainty, leading to adjustments in market valuations.
Market sentiment has become excessively fearful, with indicators like the Fear and Greed Index signaling extreme fear. Crashes tend to happen during phases of euphoria, not fear—a clear paradox.
The recent bull run since late 2022, returning approximately 87% on the S&P 500, is approaching the average length for a bull market. Historically, bull markets last about five years, with an average return of 114%, indicating we are still slightly below average and not in abnormal territory.