“When it comes to the overall stock market, there are only 2 fundamentals that matter. Forget book value, div. yield, PEG, etc. The 2 factors that matter are:
1. How much money is there?
2. How much does that money want to be invested?”
–Tom McClellan, @McClellanOsc
Central banks have been vigorously pumping up their balance sheets, with liquidity flowing into stocks. We shall see what happens when the flow slows and the river begins to dry.