why so bully?

With the precipice of the 'fiscal cliff' approaching and an ever reducing appetite to reach a compromise on both sides of the US legislature, it is appearing unlikely that a deal will be reached. Many commentators are claiming this could send the US into another recession with markets likely to follow.

Clearly a lot of focus in the AUS market has shifted towards returns given the drop in interests rates, but have people forgotten where we take our lead from? I for one can only see the market going in one direction from here.