The unknown, unknowns ganged up on us last quarter but the market remained remarkably resilient.

Uprisings in the Middle East, so what? Earthquakes in Japan, that’s unfortunate. More Sovereign Debt problems in Europe, been there, done that.

So what’s it going to take to set this market back? Well, I’ve got a list that I will share with you in a minute. But let’s start with why this market is so strong, and in my opinion it can be summed up in a word. Liquidity.

There’s simply a lot of money around that has to go someplace and right now its favourite destination is the
stock market.

Staying focused on this one issue has helped us avoid all of the “noise” we hear daily and it explains why the
market didn’t perform poorly in the face of several negative headlines.