There is a lot of money looking for a place to go right now. And that's going to increase in the near future. For example, the government cannot afford to support a lot of people on social security. It just cannot do it. And so the alternative is to encourage people to save for retirement and that's happening now. And all that money flows into mutual funds and those funds have to be 90% invested. That's just the way it is.

I still think there are a lot of negatives around (such as our huge debt and absolutely no sign of anyone doing anything about it), and we're still in a secular bear market (meaning PE ratios will continue to trend down). But that doesn't mean that prices won't go up with inflation or a shrinking dolllar.

However, the most important point is that the stock market was in a strong uptrend. We had a big down day, but that didn't even amount to a 10% correction. And the market direction looks like it is resuming up. Listen to the market.