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...your other point, fundamentals don’t seem to matter much anymore.

Not sure where that idea came from but let's put it to rest and have both of us agreeing that fundamentals matter and they mean things. We talked a lot about EPS's, so lets actually look at them:

Sure they're at an all time high, just like they were in '88, '89, '93, '94, '95, '97 --the point being that as a metric it's not by itself clearly bearish. This site has 'em going back to 1870 and 'all time high' levels is the norm. Let's go the whole enchelada w/ earnings and dividends on top of share prices:

You tell me: why should we see current levels as bearish?

...This is a fed-driven market...

That line works great for pundits and politicians, but working for a living demands hard facts and numbers. The fed does not buy common stock so they can't move share prices. Loony leftists like to say the government's all powerful but in real life the Fed's small potatoes. Right now Fed banks got about $4T --mostly T-bills plus a few mortgages. Total corporate assets (from page 124 of the Flow of Funds) for non-financial businesses is $37T. The Fed --or any governmental agency for that matter-- couldn't control the free market even if it wanted to. Central planning is a lie.

I’ve said it before and I’ll say it again.

What “The sky is falling!” contingent misses is that when you invest in stocks, you are investing in American business.

American business WILL figure out a way to win. They always have, they always will. Their CEOs want it, the politicians want it - both the liberals and the conservatives.

Individual companies come and go, but, as a whole, American business succeeds.

With my asset allocation, if stock gains push my stock investments too high, I capture some of that gain and move it into bonds. In fact, I’m buying some Vanguard Inflation Protected Securities (VAIPX) and Vanguard Intermediate Term Tax Exempt (VWIUX) funds tomorrow.