Our guess is that stock market investors are seeing the distorted picture caused by the feds' meddling...not the real picture. They look. They see low interest rates. They see stimulus. They see a stock market that seemed so friendly and so rewarding for so long that they can't imagine anything else. They see a government taking action...and making things better. They read Thomas Friedman and think the 'political class' can fix whatever problems it encounters.

I'm not sure they put even that much thought into it. These guys just follow whatever is happening. If stocks move up, they buy - down, they sell. That's the extent of their analysis. The name of the game is making up losses, not investing for profit. The only long term holders left are those that are trapped and can't afford to book a loss. That sets the floor (so far). The rest is just noise.

ebear