I'm sitting on a lot of cash right now but I'm too befuddled by what's going on in the markets to deploy any of it into risk assets. On the one hand, we have unfettered speculative mania occurring everywhere, even with valuations at all-time highs. Under normal circumstances you would think we're heading for a major correction soon, but easy central bank policy and government spending are showing no signs of slowing down, which makes me think this bull run might still have legs. I don't want to be sitting on all this cash due to inflation risks, but I'm afraid to go near a lot of equities with valuations where they are. Two things I'm looking into are emerging markets and domestic energy, where valuations look more reasonable, but I'm still uncertain.
What are other people's thoughts on the market, and what are you doing with your personal portfolio?