Wall Street is running on rocket fuel and a whole lot of borrowed cash. Our latest Bear and Bull survey shows 61.4% of respondents are bullish heading into June, powered by a market rally that keeps defying the red flags. Stocks are ripping, AI is still pulling capital like gravity, and investors are leaning further into risk even as the red flags pile up.

• The S&P 500 climbed 5.15% in May, with the index rising in nine of twelve months, while the Nasdaq 100 surged 11.5% during the same month.
• Investors are increasingly using leverage to chase the gains, with margin debt climbing to over 1.25% of US market value, near the highest level since 1997.

Forward-looking: The market’s favorite warning signals are flashing red. Robert Shiller’s CAPE ratio is near dot-com-era levels, the Buffett Indicator is at a record high, and Goldman Sachs says rising retail leverage warrants caution. Yet investors keep betting that the AI boom can outrun valuation concerns — and history shows these warnings can stay ignored for far longer than expected.