I respect your opinion. It is shared by many. In November 2012, the big scares were the fiscal cliff and the debt ceiling. These dark clouds on the horizon looked irreconcilable. The only way to preserve your wealth, the experts said, was to load up on physical gold. Well look what happened. Gold went south like a duck in winter, and the equities markets enjoyed the rally of the century.
Now, the taper of quantitative easing, rising interest rates, and the bankruptcy of Detroit have once again gathered dark clouds on the horizon.
In my humble opinion, a thing goes up in price if the demand for that thing goes up. The "thing" I am referring to is Money. The demand to borrow money is increasing, driven by a desire to buy homes. The cost of money is interest. So, interest rates are being driven up by an increasing demand for money. To buy homes. When I bought my house in September of 1998, I got a 30-year fixed rate of 7.125% I thought that was a good deal at the time. In that environment, during the late '90s, the equities markets were booming.
I believe that we are heading for a correction. It may be a sharp correction. However, it is a correction within an overarching secular bull market. Interest rates cannot stay this low forever.
To expect that is unrealistic. I remember a time when a savings account paid you 5.25% interest.
Those were good times!