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Or sign-in if you have an account.Subdued survey readings don’t always tell the full story, especially in a bifurcated market where the artificial intelligence craze is separating winners from losers at an increasing speed. Photo by ANGELA WEISS / AFP via Getty ImagesUnited States stocks may be vaulting from one record to the next, but Wall Street analysts covering them are in no rush to keep up.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorResearchers who follow individual companies and almost always predict shares will go up are slashing their views on S&P 500 index companies at a faster pace than raising them for the second time since the war in Iran began, data compiled by Bloomberg Intelligence show. In the broader Russell 3000 index, the proportion of members with a “buy” recommendation is almost exactly where it was four years ago and is well below a dot-com peak, according to data from Jefferies LLC.Whatever the exact reason behind the newfound skepticism is, it is viewed as a healthy development. From a contrarian perspective, it means sentiment is far from reaching a fever pitch that often heralds a top.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“I tend to think of sentiment through the lens of ‘are there more incremental buyers or sellers?’” said Andrew Greenebaum, senior vice-president of equity research product management at Jefferies. “The sell side doesn’t show the signs of buying in — yet.”The S&P 500 has posted record after record since mid-April amid hopes for a peace deal in Iran and enthusiasm around the profit potential of artificial intelligence technology. The index has advanced for nine consecutive weeks, gaining 20 per cent during that time, in what has been the strongest winning streak of this length in 75 years, according to LPL Financial.While overbought conditions are flashing warning signs and participation in the rally remains narrow, few signs of outright euphoria are in place. The share of Russell 3000 constituents with a buy recommendation is sitting at 82 per cent, slightly above the long-term average but below the 90 per cent peak at the turn of the century, according to Jefferies data.At Bank of America Corp., a contrarian indicator that tracks strategists’ recommended allocation to stocks remains in “neutral territory,” despite rising over the past month.The reading is still below levels reached in prior peaks and implies “a healthy S&P 500 price return of 12 per cent over the next 12 months,” BofA strategists Victoria Roloff and Savita Subramanian wrote in a June 1 note to clients. And the latest survey from the American Association of Individual Investors indicates bears continue to outnumber bulls.To Greenebaum, the setup creates “one of the most reluctant rallies in a long time.”To be sure, a lack of euphoria is no guarantee that gains will continue, particularly as other warnings signs mount. Valuations remain elevated by historical standards and tech concentration has reached extremes — all while discussions between the United States and Iran around reaching a deal to reopen the Strait of Hormuz have been in a holding pattern. Iran on Monday said it would suspend “talks and the exchange of documents through mediators” in protest of Israel’s assault in Lebanon while warning it could target northern Israel if the attacks continue, according to the semi-official Iranian Students’ News Agency.Moreover, subdued survey readings don’t always tell the full story, especially in a bifurcated market where the artificial intelligence craze is separating winners from losers at an increasing speed.While Wall Street strategists and analysts may remain cautious, other measures reflect elevated risk appetites, according to Dan Suzuki, global investment strategist at iCapital. Outside of survey data, actual household equity allocations are hovering at record levels. Retail investors increased buying of leveraged equity-linked products of late, and a gauge of stock exposure tracked by the AAII is sitting at 69.8 per cent, close to the highest level since 2000, he said.“At this point, the bulls are dominated by AI bulls, as this segment has the best earnings growth and the best momentum,” Suzuki said. “Outside of that trade, optimism is definitely more spotty.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.