Despite the fact that 2024 has gotten off to a rocky start, the S&P 500 is now trading 2% below a new all-time high.

 Majority of investors hold an optimistic view on the U.S. economy, corporate profits, and the Federal Reserve's monetary policy trajectory.

A recent survey by BofA Global Research found that 66% of fund managers believe the economy will experience a gradual and controlled slowdown in 2024, a "soft landing."

 Investors are expecting a reduction of approximately 140 basis points in interest rates this year, nearly double the central bank's projection.

The American Association of Individual Investors survey revealed that bullish sentiment increased to 48.6% in the most recent week, slightly lower than the peak observed in December.

The formation of these perspectives has been significantly influenced by evidence of declining inflation, a relatively robust economy, and the Federal Reserve's guidance.

Some investors express concern that the optimistic market outlook may lead to greater disappointment if any of these situations fail to materialize.

The S&P 500 experienced a significant decline of 1.54% this week, marking the largest weekly drop since late October.