Barry Ritholtz personifies the stock market:
Indeed, a closer look at what Mr. Market wants reveals it to be untenable: He desires no capital gains taxes, 0% interest rates, endless stimulus. He hates regulation, is big on deficit spending, does not care much for shareholders’ rights. More, more, more: Mr. Market craves multiple expansion, ever-increasing profitability, still higher revenues. He has no problem with accounting fraud – just don’t get caught. He’s happy to engage in warfare, so long as we win quickly with few casualties. He wants certainty about the future, comfort with the present, rosy nostalgia about the past.
In short, Mr. Market wants most everything he can’t have — which is the real reason Bond Markets exist – to be the adult supervision for equity markets.
What Mr. Market wants may impact the short run, but in the long run, it simply does not matter. He will have to adapt to changing conditions – just like the rest of us.