The US stock market has been remarkably tranquil this summer. Volatility has dropped and worries have grown that investors are complacently marching lemming-like toward a cliff.
There are reasons for concern. Despite the lackluster earnings back-drop the S&P forward P/E is trading at near a 14 year high. The median stock trades at record 21 times earnings which even surpasses its recent high before the financial crisis. With the summer doldrums at an end, predictions of an