Core Insights - The stock market is currently at its most expensive valuation in over two decades, with the S&P 500 Index reaching new all-time highs and rebounding from sell-offs [1] - Despite high valuations, investors continue to drive the market higher, indicating a strong market sentiment [1][2] Valuation Metrics - The Shiller Cape Ratio for the S&P 500 is around 38, similar to levels seen before market crashes in 2021 and during the dot-com bubble [4][5] - The S&P 500 trades at a historically high 23 times forward earnings, driven largely by the performance of the "Magnificent Seven" stocks, each exceeding a trillion-dollar market cap [5] Investor Sentiment - Billionaire investor David Tepper expressed discomfort with current stock multiples but acknowledged the difficulty of staying out of the market due to ongoing Federal Reserve support [6][8] - Tepper noted that the Fed is expected to cut rates two more times this year and once in 2026, which he views as supportive for stocks despite concerns about inflation and economic risks [7]