Yes, it is up because of Fed policy, but I don't think that is the whole reason. I think people are putting money into the stock market simply because there isn't another place to put it. China is going down, and so is the EU. BRICs are not doing that well anymore. The bond market doesn't pay well. Real estate in some markets has recovered, but may not do well from now on. I believe we can have a correction, but for a crash, there has to be some other place for the money to go, and I don't see it yet.
“I think people are putting money into the stock market simply because there isn’t another place to put it.”
Yep. Fed has kept interest rates ridiculously low. CDs? forget it. Bonds? Maybe but with interest rates nowhere to go with up that means bond funds will go down. Thus people are in the market. I have 25% in but that’s only because I am about at retirement. If I was 25 I would be all in
You can’t time the market. If one has a long investment horizon just asset allocate and save 20-30% a year or more and one will do fine in 30 years. If one is young and does NOT have some money in the market they are foolish because inflation will take you done.
On the other hand if one is about to retire like me it is indeed dicey. I think a terrorist attack is the next shoe to drop and will be reminiscent of 2001. Gird your loins.