patrick.net

That was pretty incoherent

OK, but assuming what he saying is true there might be indigenous says

That was pretty incoherent

Ok, on the other hand:

"This leads us to a very interesting situation and looming disaster for those who aren't invested in stocks! Consumers (who are ultimately the buyers of stocks) have the highest cash levels in a generation, combined with the liquidity of stocks that is probably the lowest in a generation and you have the recipe for the best is yet to come in the stock market. Yes, the rally in stocks is likely to continue for many months and the performance may well rival what we have seen over the last 5 years!"

You have said that as long as the Fed is able the bubble will continue... Sort of like musical chairs...

indigenous says

Yes, the rally in stocks is likely to continue for many months and the performance may well rival what we have seen over the last 5 years!

Do you seriously believe what they are arguing?

Stocks can rise higher and longer than the experts predict
The author's, however, rationale makes no sense
Other stories on zero hedge make it clear
Artificially low rates, sovereign fund, central bank and the companies themselves are the majority of buyers
The retail investor is largely irrelevant
The bubble pops when the artificial support is removed

smaulgld says

Stocks can rise higher and longer than the experts predict

The author's, however, rationale makes no sense

Other stories on zero hedge make it clear

Artificially low rates, sovereign fund, central bank and the companies themselves are the majority of buyers

The retail investor is largely irrelevant

The bubble pops when the artificial support is removed

Retail may be irrelevant. but people are not good at stashing cash, they often can't help spending it. And since savings pay close to nothing thanks to ZIRP/QE, they are looking to hedge fund managers for that yield. And those managers are forced to produce that yield, otherwise they will get no business, fame or are being ripped to shreds by know-it-alls on patnet. Nobody wants to invest Peter Schiff or Marc Faber style, so retail just puts their 401Ks and extra dough into the hands of hip fund mangers chasing that yield in tech trannys and other hipster stocks - they have no choice because nobody is able to look beyond a 1-2 year timeline anymore. Thus it is possible for that bubble to propel itself much further. I have no idea where this goes from here and hedging is certainly prudent, but I don't discount DOW 20K anymore as trumpeted by Altucher long, long ago. And that would also keep housing afloat. However if housing collapses or the tech trannies correct back to sanity, then watch out below!!

If one invests in individual stocks, I really don't care what the pundits say, concerning if 'the market' is overpriced or not. The cash I have to deploy into one of my 30 holdings, will go to the ones that have the best current value. I'll hold (but not add) to those positions that are currently expensive P/E-wise....

As a Dividend Growth Investor, I'm 'in it for the long haul' with each of my positions, because (blue-chip) dividends are WAY more stable than stock price. By selling to cash, I'm missing out on dividend payments, which would get DRIPPED into more shares.

It's not for everyone. Those that have time (and the Maalox) to trade in and out, could make more $$, but i have neither the time, luck or Maalox to trade. I'd rather sleep well at night and pick up solid, quality companies on the dips, and increase the drips...

JH says

17,000 is unreasonable for stocks and we know that anything that still gains in the coming months (years?) will be soon wiped out, so investing in stocks is as risky as ever. But as the anatomy of a bubble shows, the bubble spikes when the general public gets in.

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JH, I kinda disagree that we are in a 'stock bubble'.... Slightly overpriced? Sure. But if you want a REAL bubble, go back to '98-2000. THAT was a real bubble. KO trading w/ P/Es in the 30-50s! Currently KO has a P/E around 22, which is far from 'bubble prices'. I wouldn't be buying KO right now, as I usually buy it when P/E is 20 or under... But it not that big a deal if you were accumulating for the long haul... Same goes for many other blue-chip stocks.