Stop Worrying

The water is fine.  Last year is history.  Those hoping for another collapse to buy into will be waiting for a long time.  The game is now rigged.  It is no longer like the old days when the U.S. was on a gold standard and money supply was constrained.  There are no constraints on money.  Anywhere.  Not in America, not in Europe, and soon to be not in Asia (China).

Back in the early 1900s, in Jesse Livermore's day, the supply of money was determined by the amount of gold.  Well, that kept a lid on excessive money supply growth and you had brutal bear markets that lasted years and years.  Those days are history.  Now your lucky to get a bear market that lasts more than 6 months.

Money is now printed at will.  It can only lead to one type of market in the long run:  an up market.  Europe has caved in to the market's tantrums and it is now following the U.S.'s course, without the fiscal stimulus.  This will only lead to money pouring into risk assets.  It will only briefly be interrupted by news headlines.  The trend of money creation is strongly up.  Don't fight it over the long term.  If you are going to short, you have to play for quick hits, there are no bear market stories under these conditions.  Maybe if we get to ridiculous high valuations, but not at these valuations.