Stretched valuations - ignored. An overwhelming demand for financial products that would someday reverse - ignored. Historical economic anomalies such as a staggering trade deficit, soaring currency, significant credit and debt expansion - ignored. Quite possibly, the period of the charmed existence is over for now as market participants tip toe their way back toward the reality of the fundamentals that underpin stock ownership. The trenches of reality are still off in the distance.
Investors find themselves disoriented in the middle of the battlefield.
The comfort of euphoria is fading fast. The landscape is taking on a darkened tone. The education is beginning that all is not fair or friendly in the art of financial war. When navigating the battlefield on a moment to moment basis, it is really the singular step right in front of you that counts. It isn't easy to distance oneself from the chaotic noise of the situation and view the action from afar.