Group 1 - Investors are heavily pouring into speculative and volatile sectors, ignoring the risks implied by the S&P 500 nearing historical highs [1] - The Invesco S&P 500 High Beta ETF is on track for its best quarterly performance since 2020, while Goldman Sachs' weak balance sheet stock index is expected to achieve its best monthly performance since January [1] - The current market sentiment reflects a "fear of missing out" (FOMO) cycle typical at the end of structural bull markets, despite high economic and policy uncertainty [1] Group 2 - Retail investors have become key drivers, actively pursuing momentum trades in tech giants and speculative assets, even as institutional investors sold off during market declines [3] - The preference for buying the dip has become a conditioned response among investors, particularly for high beta stocks during market downturns [3] - Large tech stocks have been the main engine of the market over the past two years, with a strong rebound in the S&P 500 following a brief period of concern over AI competition [3] Group 3 - The technology sector has a low weight in small-cap indices, with information technology and communication services accounting for nearly 43% of the S&P 500 but only 13% of the Russell 2000 [4] - Strong performance in tech companies is driving earnings growth at the index level, with S&P 500 component earnings expected to grow by about 8% year-on-year, led by a nearly 21% expected increase in the information technology sector [4] - In times of uncertain earnings prospects, investors tend to favor sectors with long-term themes [4]