Perception becomes reality

We have been bouncing between roughly 1,150 and 1,200 on the S&P 500, and are right back up to 1,200 today, despite so much negative news out of Europe and elsewhere.  The reason, I believe, is very simple - valuations.  When the S&P 500 was around 1,350, even with good news, stocks were selling-off.  Now, after a 20% correction, valuations are more attractive, and therefore, investors are buying, even in the face of seemingly dire news.  Go figure.