bill, i agree with your asessment. Let me just make this point though:

In 2004-2005, you sold based on fundamentals. Fair enough. The median priced home to median income in san diego is still over 10, way way above fair value, and it was even worse in 04-05 (probably 11-12x median income). Value on the stock market, most people would measure by p/e ratios. Stocks are not overvalued by 200-300% like a lot of (especially california and florida) real estate. They are overvalued by 10, 20, 30%, and in some super bubbly stocks maybe 50%. Stocks like MO, JNJ, WMT are at relatively fair to even low p/e ratios. High growth stocks like Google and Apple have peg ratios in line with their performance. Now, if a humongous recession hits, then of course everything gets knocked down. My point is that while there may not be a lot of value in terms of stocks undervalued right now, many Dow and S&P 500 stocks are not insanely overvalued (like in the late 1990s when walmart had a p/e of over 40.)

I'm also not saying that the time is right to buy, or sell, but holding what you have seems like a good option right now. GE's earnings come out 9.6% increase, this is why the market breaks new highs as GE's earnings are taken as an indicator for the rest of the market, especially for internationally based blue chippers.