The stock market is a carcass because the valuations of businesses in the market are for the most part inflated to unrealistic levels. Now how they got there is a result of the fed's loose monetary policies which have done nothing other than inflate the USD and provide the illusion of value. It is a 'wealth effect' that is non existent. You want to buy a piece of a business that is not profitable and trading at a PE of 25? As soon as interest rates move up, which is another serious problem the Fed has, the stock market will see red across the board, and those business will lose value quite fast. Value which they never had to begin with.