I am so sick of people thinking that the price of the S&P is some ridiculous result of non-sensical behavior driven by passive flows and no rational basis. All these people that have called everything wrong, instead of stating that we have moved into some mode of irrationality, should look in the mirror and question their own "rationality." The truth is, the market has been behaving imminently rationally. P/Es should be going up. Rates out the curve should be going down. And so on. It is only the very limited and outdated orthodoxy of many "smart" people that is leading them to dismiss these moves as non-sensical. They are operating from completely wrongheaded first principles, driving them into despair to explain, and continually leading them to inaccurate conclusions.