The S&P 500 has achieved record highs, despite being under pressure from significant global challenges, including the Iran war and the highest US tariff rates since the early 1940s. Investors seem to be employing a new valuation strategy, termed 'Earnings Before Iran, Tariffs and Dubious Announcements', which allows them to overlook short-term volatility and focus on long-term market trends. This approach is partly driven by passive investors who are less affected by daily market fluctuations. The technology sector has played a crucial role, accounting for about one-third of the S&P 500's market capitalization, and its optimism has helped maintain upward momentum in the index. Additionally, the market's reaction to policy changes, such as Trump's tariff measures, suggests that investors anticipate limited disruptions to the bond and equity markets, further supporting the current bullish sentiment. As a result, while volatility has increased, the market appears conditioned to absorb shocks more swiftly, leading to a disconnect between economic realities and rising stock values.