"... there has to be Fundamentals to support ...."
"... Uhh no, not really ..."
Yes, really.
The Money Supply and Interest Rates are indeed part of Fundamental Analysis. Do you not include those two very powerful forces in your Fundamental Analysis?
As long as the the Fed "prints" more money and that Money finds its way into Stock Market then Market prices will rise. When the money supply shrinks/tightens then the Stock Market will fall.
"... Fundamentals WILL rule at some point ..." HUH? Fundamentals always rule when you include the Money Supply and Interest Rates into your Fundamental Analysis.
You can say that sometimes the Stock Market appears to be Over-Valued or Under-Valued when compare to just the Unemployment Rate, P/E Ratios, Foreclosures or Food Stamps. The problem is, the value of the Stock Market reflects much more than just those economic statistics. Also, the Market will try to "front run" what the Fed says it is about to do but has not yet done.
The Central Banks of the world have the power to "pursuade" money to move into or out of Stocks, Bonds, Commodities, Real-Estate just by manipulating / controlling their Money Supply and Interest Rates.
What appears to be "Irrational Exuberance" from just a simple P/E ratio point of view can be a huge Money Making opportunity from a fundmental "Carry Trade" point of view.
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