It's hard to get much better than this sentiment-wise, says John Hancock's Emily Roland

Market Sentiment and Momentum - The market is experiencing a strong momentum trade, making it difficult to resist [1] - Market sentiment is considered stretched, despite the ongoing rally [4] - The momentum factor has been the best performing, up 20% [4] - Momentum can reverse powerfully, but it can also last for some time [5] Earnings and Valuations - Corporate earnings are coming in at 12% year-over-year, twice what was expected [2] - The S&P 500 is trading at 22 times forward earnings, based on analysts' expectations of 14% earnings growth in 2026 [3] - Midcap stocks are trading at a 30% discount to the broad market [9] - Midcaps are trading at average to their 20-year average valuation [10] Investment Strategy - Investors should trim into the riskiest pockets of the market and redeploy assets into higher quality stocks [6] - Focus on stocks with great return on equity and a strong PEG ratio [6][7] - The company is overweight technology stocks in the United States [7] - Diversification into high-quality areas in other parts of the market, such as midcap stocks, is recommended [9] Market Concentration - The top 10 stocks now represent 40% of the index, the most ever, indicating increased market concentration [8] Sector Outlook - Industrials are expected to benefit from capex in the United States [11]