I think we are on the edge of the precipice, a combination of confidence, enthusiasm, selective euphoria, blind optimism, faith (in central bankers), and buy-the-dip mentality (any correction is healthy). The Bernanke put is the hook. Everyone fixated on the magical powers of the Fed, totally blind to the utter economic destruction going on. No one is stopping to consider that stocks are long dated economically correlated assets… and that the economic foundation has been reduced to quicksand. There are signs of delusion everywhere. Two of my favorites: cash on the sidelines and a wall of bearish sentiment for stocks to climb… patently absurd.
~ Kevin Duffy, June 20, 2013