Most people are convinced that QE3 (or its equivalent) will soon be with us. And most of these also believe that it will be good for the stock market.

TF Market Advisors cautions that the assumption that markets will respond may be incorrect:

Maybe all the Fed members can read Winnie the Pooh and the Money Pot prior to the September meeting.  It is a simple story of how greed, and gluttony, and doing what feels good now, can have some very negative long term consequences.  That story ends well, but maybe the path of printing money won’t.  Another round of QE3 may not do much to help the stock market this time since so many of the factors are different, so much has been priced in, and there were many other positives that helped stocks last year that may not reappear. 

Perhaps TF Market Advisors is correct. My strong belief is that they are correct. Hence I have virtually no exposure to traditional stocks.