Warning signs that the stock market is becoming detached from reality—or euphoric—are cropping up.
The S&P 500 has had quite a run. It’s up almost 9% since the Oct. 4 bottom of a pullback. That rally has been broad, not driven by just a few stocks, indicating markets are widely optimistic about future earnings and economic growth. The Invesco S&P 500 Equal Weight exchange-traded fund (ticker: RSP), which weights each stock in the index equally and therefore shows the breadth of stocks rising or falling, has gained 7% since…
