Recent data indicates that U.S. households are exhibiting unprecedented optimism regarding stock market performance, with 56% of consumers anticipating higher stock prices over the next 12 months, the highest level recorded since 1987. However, this optimism contrasts sharply with the current valuations of the stock market, which are among the highest in history. The S&P 500 is trading at a Price-to-Earnings (P/E) ratio of 22x for the next 12 months, while the Nasdaq 100's P/E ratio stands at 28x. Additionally, the U.S. stock market to GDP ratio has reached 209%, surpassing the previous record of 200% set before the 2022 bear market and exceeding levels seen during the 2000 Dot-Com Bubble. Despite the bullish sentiment in the stock market, Americans are reporting low levels of personal satisfaction, with only 44% expressing they are 'very satisfied' with their personal lives, the lowest since Gallup began polling in 2001. Furthermore, households' expectations for real income growth over the next year have fallen to the lowest levels on record, indicating a growing pessimism about future financial conditions.