Diamond hands, or just too much capital out there?

I was listening to an episode of The Compound & Friends yesterday and they were talking about how the market just seems to hang in there. There are so many reasons for a correction (high P/E, Hormuz, tweets, inflation, housing) but somehow the market is still sitting around 5% of all time highs. There is rotation within the market and segments are in recession, but overall the money is not moving to the sidelines. People and institutions just aren't panic selling. So it occurs to me this morning that there is a lot of shared knowledge out there that "dumb money" has had access to for years now, and there is a heavy influence of index ETFs, so if people hang on or buy the dip then the market just absorbs the shocks that seem to come daily. I guess that is the "diamond hands" hypothesis. The other possibility is just that there is too much money out there looking for a home and everyone knows that inflation is baked in so you just have to stay in assets. Thoughts?