Institutional investors are exhibiting unprecedented bullish sentiment, as evidenced by a record-long positioning in the S&P 500, exceeding 240,000 contracts. This figure marks a doubling of long positions compared to levels prior to the bear market that began in 2022. In contrast, small-cap stocks are facing challenges, with the percentage of unprofitable companies in the Russell 2000 rising from 15% to 39% over the past 30 years. As of the end of November, nearly 45% of Russell 2000 members were not profitable on a trailing 12-month basis, significantly higher than the approximately 5% of unprofitable companies in the S&P 500. Since the onset of the S&P 500's bull market in October 2022, profitable members of the Russell 2000 have seen an average increase of 45.2%, while non-profitable members have only gained 22.1%. Additionally, rolling 65-day equity ETF flows have recently surpassed +2 standard deviations, indicating increased investor enthusiasm. However, concerns are rising as the S&P 500 is reported to be at its most expensive levels since the late 1990s and 2021, periods that preceded market downturns.