Don't be fooled by illusions! Analyst warning: The current resilience of the US stock market may be a "trap" for a new round of sharp decline.

Analyst Gina Martin Adams recently issued a warning to investors, saying that the relative strength currently displayed by the stock market may be nothing more than a temporary blip. She compared the current market environment to the early stages of the Russia-Ukraine conflict, noting that the two share similarities.

Adams posted on the social platform X, saying, “At the beginning of the Russia-Ukraine conflict, the stock market also showed ‘resilience.’” She noted that after oil prices remained at high levels for five straight weeks in 2022, the U.S. stock market ultimately caved in under inflation pressure and then began a sharp drop.

Although past market trends do not indicate the future, this warning suggests that even if the market has been stable recently, investors still need to stay on guard—historical experience shows that the market’s delayed reaction to economic pressure often leads to a substantial pullback.

Since the escalation of the conflict between the U.S. and Iran on February 28, as of Monday’s close, the S&P 500 index is down only 3% and is still hovering near its historical highs; the Dow Jones Industrial Average is down 4%, the tech-heavy Nasdaq index is down 2%, and the three major indexes still maintain double-digit year-over-year gains for the year. Meanwhile, crude oil, the U.S. dollar index, and cryptocurrencies are among the few asset classes that have recorded gains.