It surely seems that there is no stopping the rise of Dow and 40,000 Dow in a couple of years is a sure bet. People also convince themselves that there is no other place where to put the surplus money - Precious metals are hammered time and again, bonds are starting to get lower yields (after a 30+ year run), real estate is difficult to manage etc. etc. On top of it they think that every time there is a inflation stocks rise to try to catch up with rising inflation.
So, let me provide some perspective and see whether the hypothesis of Dow 40,000 holds. Ask the question, why exactly do people (specially in Europe) buy bonds with negative yield? It is insane to deposit money and only to get a fraction of it on maturity. This clearly indicates that people and sovereigns don't have trust on financial markets and as a result they rather lose 1% on bonds than to lose all in stock. Now if you can get in and get out of your trade positions then you can make money but in this age of high frequency trade and big money, what chances do you have?
Last but not the least, ask yourself what's wrong with being just on the sidelines enjoying the show, soaking some sun and positioning yourself for the next wave.
As always, comments welcome and if you like this post, "upvote it".