[jsanders2001]

The stock market is driven and controlled by expectations, speculations, and manipulations, seldom reality.

[SIRTRIS]

Of course The Economy May Stink, but the Stock Market Doesn't Care then this One of the main drivers behind the trading mentality has been the Fed and its $85 billion a month in asset purchases. And this is what's called a "STOCK MARKET"?? Sugar up the manipulation!

[Cheerio]

With helicopter ben stuffing $3+ Billion into the market on a daily basis why is the market response even a question?

[MeneMeneTekelUpharsin]

"There's just this disconnect from reality," said Kathy Boyle

That statement is so true, it hurts to say, write or hear it.

[fella]

Real inflation drives prices up.

[American in Israel]

Stop pouring in Billions of funny money and watch the floor drop out. The Stock Market is doing what every fire you pour gas on does.

[Oatka]

No matter, though, as investor—riding a wave of Federal Reserve liquidity

"The Ship of State is awash in a sea of fiat currency and the Feds are using the rudder as a paddle." (A resurrected quote from bubba carter's time.)

[southernnorthcarolina]

I certainly don't like the fact that the Fed is pumping mass amounts of liquidity into the market, but I'll gladly take what's given to me. As Damon Runyon wrote: "The race is not always to the swift, nor the battle to the strong, but that's how the smart money bets."

So, while I worry that our currency is being debased, and our national debt is getting out of hand, I console myself by going along on the stock market ride. I've done very well the last several years, and as long as "quantitative easing" continues, I'll stay invested.

That said, the party has to end sometime, though whether by fire (hyperinflation) or ice (deflationary depression) is not known, or at least not by me. But the end won't be pretty. With this in mind, I've moved my portfolio in the directions of conservatism (adding gold and gold miner ETFs during the recent drop in gold; moved toward recession resistant and dividend paying "sin stocks" like Philip Morris International; maintained a substantial position in a well-run, profitable regional bank which has made some strategic moves I approve of; and have increased my exposure to Singapore and China).

Don't like the Fed's policies? Join the club. But don't pout about it; take the gifts they offer.

[Mike Darancette]

They have managed to disconnect the stock market from reality. What’s left is a straight up Ponzi gambling scheme

[MarkL]

In addition to the basic liquidity, it's also fueled a belief that even if conditions don't improve dramatically, they'll be enough money around to keep equity prices floating.

Which is why I'm scared to death that once the Fed stops printing money and injecting it into the economy (and since there's really no place else to put it, it's going into the stock market), the market is going to crash, and it will probably be a lot worse than 2008.

The stock market simply doesn't make any sense at this time, and it seems that stock prices haven't been based on company financial health for quite some time.

Mark