The one-month average on the proprietary gauge has swung back into the double-digits for the first time since February — reaching levels that have signaled extreme frothiness in the past.
Wall Street speculators have returned in full force: US stocks have snapped back from the throes of April’s tariff selloff, hovering near record highs, the pipeline of new SPACs is rebounding and Cathie Wood’s flagship fund is on a historic tear.
That’s sparked a swift jump in a Barclays measure of the market’s “irrational exuberance” — a phrase coined by former US Federal Reserve (US Fed) Chair Alan Greenspan for when prices exceed assets’ fundamental values.
