U.S. households have reached a record allocation of 29% of their financial assets to stocks, according to Bank of America (BofA). This figure surpasses previous peaks observed in 1968 and 2000. Notably, the 10-year annualized returns of the S&P 500 following those years were 3.5% and -0.4%, respectively, indicating a potential correlation between high stock allocations and poor market performance in subsequent years. Additionally, investors' overall allocation to U.S. stocks has reached an all-time high of 51%, exceeding levels seen during the Dot-Com Bubble and prior to the 2022 bear market.