Finally, we can now turn our attention to the AVIV ratio, which helps us assess the average unrealized profits (paper gains) held by investors active in the market.

We can use this metric to gauge whether the market is currently overheated or underheated relative to the profitability of its participants. Typically, bull markets end when all investors have achieved significant profits, leading to significant supply pressures while lacking new investors willing to buy at current prices.

Currently, the AVIV ratio has not yet reached its extreme +3σ range, suggesting that the market may have room to run before the profits held by the average investor become too tempting.