As of December 2024, the S&P 500 is trading at 22 times forward earnings, slightly below the historical highs of 24 times in December 1999 and 23 times in August 2020. The top 10 stocks within the S&P 500 have seen their price-to-earnings (P/E) ratio surge to 30 times, marking one of the highest valuations since the Dot-Com Bubble in 2000 and the pre-bear market period in 2021. In contrast, the S&P 500 excluding these top 10 stocks has a P/E ratio of 19 times. Despite recent market corrections, the Fear and Greed Index remains in the 'greed' territory, indicating a prevailing sense of optimism among investors, although some analysts suggest caution as the market may be entering a phase of 'illusion' following significant gains in risk assets over the past two years, particularly a 50% rise in the S&P 500 since October 2023, a rare occurrence in a 14-month span.