This is why the old timers are having such a difficult time understanding the market, so much is unnatural. In the normal scheme of things you would have to be more defensive to save yourself from the market downturns or even collapse given the problems in the financial system. In today's market you don't know when the Fed is going to see the downturn and start talking up the market with the next QE. The Fed lives to smash vigilantes like bugs. "Don't fight the Fed" is more relevant than ever.

The amount of bonds the fed is buying is mind bobbling. $85 billion a month, the same as the sequester for the whole year! Now the concern is how do they stop? When so much of investing is centered on the Fed and not on profits or the economy that is messed up.

I saw a study where they pinpointed the causes of bull and bear markets and aimed it all at Fed policy. Now that should make one think.

We have been living on a sugar high. One wonders when the diabetes kicks in what will happen.