Something feels off to me. Your thoughts?

Is it just me or does something feel off? Bond yields are in the dirt. Stocks are at highs. Interest rates are allegedly going up (hahah). Oil is in the dirt. Other commodities are down too. http://ift.tt/v8A5vL

Europe shit the bed.

I don't know. Something just doesn't feel right to me. I'm basically out of the market now with my taxable account. I sold out early Friday morning. I put the Roth into BCD's because that is the only sector that doesn't look elevated right now to me.

I got out the money I wanted to use in the short term. Decided to pay off a chunk of the house and take the 3.8%. I am pickup pennies in front of the steam roller with my student loans and I still have rental property mortgaged so if rates do rise I can let those chew into it a little though it is an ARM, but I got several more years before it adjusts.

Only one thing I'm relatively confident on. Rates are going to stay low. That means more QE or the market is coming down.

If the market comes down more people are going to flock to bonds and drive the yield price down. So again rates stay low.

If rates rise home loans go up also. That will drive down home prices. So again rates will stay low.

Either way I think bond yields are going to stay low. I don't think the market is going to go up much this year.

I don't see anything that is going to drive inflation in the short to medium term.

What do you all think?

Submitted January 10, 2015 at 02:21PM by t0ssaway1 http://ift.tt/1y17syA