Party to the Bottom

Yeah, everybody's got a bomb
We could all die any day
But before I'll let that happen
I'll dance my life away
--Prince

Markets partying hard out of the gate on passage of fiscal cliff bill by House. Yes, House Republicans folded like tents.

Moral hazard has reached epic levels, as markets have been thoroughly conditioned to expect bailouts. Risk taking behavior has been consistently reinforced by the notion that government has the backs of investors.

For now, markets are ignoring the fiscal drag of higher tax rates on the majority of earners. Personally, I'm using this lift to trim stock and add gold.

position in SPX, gold