At the start of 2017, the most optimistic strategist forecast the S&P 500 at 2,500 by year-end.
S&P Year-End forecasts as of 1/6/17...
In the last few weeks, the market has not only surpassed that most-exuberant guess...
As Bloomberg notes, despite two strategists upgrading their targets on Friday, professional prognosticators are hardly raging bulls: At 2,524, their average estimate represents a 1% decline in the benchmark gauge.
But as it has melted up from there, investors are entirely unafraid as traders extend their VIX shorts to a new record high...
Additionally, the number of VIX contracts outstanding just hit a fresh record. Wagering on equity swings has become increasingly popular this year as the gauge of stock swings heads for its lowest ever annual average. While the VIX is up this month, history shows that it tends to fall in the fourth quarter.
So what now? RCMAlternatives.com has developed the following nifty flowchart of just how to proceed from here...