Jamie McGeever tweets out this chart from Barclays, in which they asked their investors what worries them the most right now.
The top worry is that the Fed reduces stimulus. The second worry is “slowing growth.”
Both of these are legitimate things to be concerned about, but really what they represent are generic answers that you give in the absence of anything concrete.
There’s no European collapse to freak out about. China isn’t hard landing. There’s no obvious reason for a geopolitical flareup that would cause oil to surge. Politics in DC doesn’t seem likely to produce a debt default.
So you say you’re worried about the taper and growth, because that’s probably all you can think of these days. And so the market just keeps going up, waiting for the status quo to be rocked by some unknown event at some time that won’t be announced.