The FOMO trade is dragging investors off the sidelines and back into stocks, but a major market peak is still far off

• The FOMO trade has returned to the market as stocks rally 20% from their lows, according to Ned Davis Research.
• But a lack of excessive optimism among investors means the stock market has yet to reach its peak.
• "Even some investors who doubt the Fed can engineer a soft landing have begrudgingly gotten on board," NDR said.  

The stock market's 20% rally off its mid-October low has sparked a fear of missing out trade and pulled some investors off the sidelines and back into stocks, according to a note from Ned Davis Research.