Risk appetites are up, and short interest is down. Has enthusiasm become irrational?

Traders on the New York Stock Exchange.
Source: NYSEa

If investors aren't all-in on stocks at this point, they're getting pretty close.

Flows into equity funds since the 2020 U.S. election total nearly $600 billion, exceeding their cumulative net intake for the 12 years prior, by Bank of America's estimates. The bank's wealth management clients collectively have their highest equity allocation in at least 16 years.

Goldman Sachs keeps a global Risk Appetite Indicator that has just ebbed from a record high set a few weeks ago, slightly above the prior peak in early 2018–which was the culmination of a relentless, surprising rally that went on even longer than the current one has.

Long-running weekly surveys of both individual and professional investors show bullishness running in the top 10% of all historical readings.