If standard deviation is normal (standard) then it makes sense that stocks would have a normal vibration. The market isn't the only thing that effects these vibrations. The currency that the stock are exchanged for also play a part. Stocks that were once traded in gold and silver back dollars are now traded with fiat currencies backed by the faith of central bank credit.
I believe credit and currency valuation has played a bigger and bigger role in these vibrations and apparent upward valuation. Ray Dalio does a nice job of explaining the short term and the long term debt cycle and how stocks are a transactional component of these exchanges.
economicprinciples.org/
Finally, I think a monetary policy that operate outside of constraints can manipulate currency value and over time make stocks appear higher in value, but when these same stocks are priced in a currency that has constraints (gold or silver in the past) stock's (the dow) true value is revealed.

Both TMSFX and HHCCX were going nowhere from January 2011 to mid 2013, so the beautiful figure above does not fully represent them. TMSFX had a manager change a month ago.

The point of the chart is to follow a fund (PRHSX) against an indicator (in this case TMSFX). Short charts can be very telling. They can tell me when to stay fully invested, when to employ hedging, when to scale out, when to take profits, and when to scale in.
This short YTD chart shows how I recently went from being fully invested mode (green comment box and arrows) to when I began scaling back (in this case it could also be called take profits) (top red comment box). The most recent action (lower red comment box) make me believe there is still some downward movement ahead for Health Care. An investor doesn't have to own TSMFX to utilize it as a helpful indicator.
A very short YTD chart with my my three investment decisions (comments):

If you are a short term investor, L/S health funds may add value.
As boomers become geezers, it's more important to select your manager, or just buy the health fund index. These ERs don't make sense over 5 or 10 years.
If you think health care funds are currently overpriced, buy RSIVX and wait for your entry point. Health care funds have to gain over the next decade, if any class of funds will. I really think the growth will extend beyond the decade.
The re-entry for biotech, if you are out, is more problematic, but that is where the most growth will occur, since the individual companies have a pricing advantage for their successful products. Unless there is a major change in health policy, these are funds to buy and revisit yearly. Either average in or buy on a major market dip.

As the board and radio/tv news, is generally equity-centric reporting, I'll lend a helping hand to the bond side of life with the below link.
Regards,
Catch
Bonds, weekending 4-25-14

@Scott, so what are your favorite ways to play infrastructure? Is it through funds or stocks, ie BIP? I agre on the water front have been considering CFWAX, which is load waived through Fidelity.

My position in BIP is a long-term one, although noticeably smaller than it was a year or two ago. I don't own it, but a company somewhat similar to BIP is Cheung Kong Infrastructure (CKISF.PK), which is a subsidiary of the giant Cheung Kong conglomerate.
I own INF, which I just continue to reinvest the monthly divs on.
I own a wide variety of energy infrastructure, although a favorite is Gibson Energy (GBNXF.PK), which is an enjoyable mix of infrastructure (including pipeline, rail loading and storage) as well as various oil services. They are the largest independent for-hire truck hauler of crude in the US and have an environmental business as well.
I think agricultural infrastructure is highly appealing, but options are limited. I own Graincorp in Australia, as well as a speculative position in Ceres Global Ag (CERGF.PK). The latter is really speculative, but owns both ag infrastructure, as well as rail and is building a commodity logistics center on the Canada/US border that will hook up to the BNSF rail line. Graincorp is somewhat volatile as well, but has a terrific dividend policy.
The Andersons (ANDE) is a US stock that is similar to Graincorp in a number of ways, but the volatility on that stock is enough to make one need dramamine. The Andersons has great assets, but the stock is too exceedingly volatile for me. There's also Archer Daniels Midland, although I think that's run up a bit much.
The railroads are a favorite and really something that I own and don't think about - very much a long-term investment. The railroads continue to do very well, whether it be frac sand or oil or the massive grain harvest in Canada.
In terms of frac sand, "U.S. frac-sand shipments jumped more than fourfold to 20.9 million tons in 2012 from 4.9 million tons in 2007, according to Freedonia Group, a Cleveland-based market researcher. Demand is expected to more than double to 52.1 million tons by 2022, Freedonia said" (http://www.bloomberg.com/news/2014-04-17/fracking-sand-spurs-grain-like-silos-for-rail-transport.html)
The pipelines are also worth exploring, but I do think that there's names both in the US and north of the border. It's clear that Keystone is probably not going to be approved this year (if ever), so other Canadian/US pipelines will continue to be popular, such as Kinder's Transmountain pipeline, which is pushing to expand. Enbridge and Plains All American (PAA) are other companies with exposure and there are a number of others.
I think most people can (and are probably best) playing infrastructure via a position in a fund such as TOLLX or GLFOX. I focus on individual names primarily because of my interests and a desire to focus on specific segments.

...IVA Worldwide at >30% cash, First Eagle Global similar. FPACX is about 45% cash. Tweedy Browne's funds lower than these, oddly enough.
Yeesh.

FYI:
Regards,
Ted
http://www.marketwatch.com/story/stocks-close-broadly-lower-friday-down-for-week-2014-04-25/print?guid=D9862DE4-49AA-4E7D-BF5F-E108299A4B73
Major Stock Indexes: http://markets.wsj.com/us

TMSFX's ER is 1.78 and has a short (inception 2011) long / short history. $53 M AUM.
"The investment seeks capital appreciation. The fund invests primarily (at least 80% of its net assets) in stocks of companies engaged in the health care sector using a long/short growth strategy in seeking to capture alpha, reduce volatility, and preserve capital in declining markets. "
Charted against PRHSX provides an interesting performance comparison over the last 16 months.
How would an investor use TMSFX to hedge PRHSX (or any other Health Care fund) from volatility or downside risk?

Thanks for the heads-up, bee. GLFOX is really interesting. I didn't realize the range of approaches infrastructure funds use. There was an article from WSJ in Feb (which quotes David, by the way) with a survey of i-funds. (It came up in full for me on a google search, so try that if the link doesn't penetrate the pay wall.)
The article mentions the TRP i-fund that's being merged away. With a mix of utilities and industrials like GLFOX and others, it was pretty much a failure, apparently in the execution rather than the strategy.

@Scout: Does it make sense based on yield and expense? I do live in California.
Fund Notes:
Expense Ratio: 0.57%
7-Day Yield:
As of 04/24/2014 0.01%
The fund invests principally in high-quality, California tax-exempt securities with maturities of 397 days or less.
----------------------
It makes no sense based on yield. The yield is 0.01%. Consider that zero yield. You get nothing. Doesn't matter that it's tax exempt: you're not being paid anything
If you want "a place to park money for liquidity", you also can't go with a bond fund, because even short term bonds do not give you the stated purpose.
The best bet for your stated purpose is online FDIC Insured banks that pay a decent yield. Ally Bank is one of the best choices for this. It currently pays 0.87% yield on a savings deposit account, no minimums, no fees. When you subtract out the California taxes you will pay on that 0.87% yield, you will be WAY ahead of anything else that I am aware of that gives you a "place to park money for liquidity". There are several other online FDIC insured banks that have yields from 0.85% to 0.95% at this time. You can find a list of them on bankrate.com and several other websites. Some others are American Express Bank, Barclay's, GE Capital, CIT, etc.
Why not just choose the highest yielding one, which I believe is about 0.95% at this time? That's an option, but some banks offer higher rates temporarily to attract money, then later lower the rates. Ally Bank has a long history of offering high rates and they don't do this as a short term teaser.
You can set up a "link" between your brokerage account and an online bank and transfer money back and forth without fees, very quickly and simply.
If anyone has found a better option for the stated purpose, I would like to know about it.

My first question would be why? What is the advantage? The yield verses the ER seems like a losing proposition. If you are looking for tax efficiency consider these USAA funds: USSTX, USATX, USBLX...here they are charted against your fund choice:

Hey smart people,
I was considering UCAXX USAA California Money Market Fund (Tax exempt) as a place to park money for liquidity. Does it make sense based on yield and expense? I do live in California.
Fund Notes:
Expense Ratio: 0.57%
7-Day Yield:
As of 04/24/2014 0.01%
The fund invests principally in high-quality, California tax-exempt securities with maturities of 397 days or less.

What a great call back at the beginning of the year to buy FIATY. I didn't make it, but I have followed it...up over 100 % over the last 12 months and 44% YTD. Nice call here at the "Scott Market".
For me MINDX, PRLAX, TRAMX has performed well enough to reallocate small profits of 10% since taking these positions.
VDE seems to be having a hard time maintaining the "golden cross" (50 dma crossing 200 dma with upward trend), but is up sharply over the last month. Ted referenced this dynamic here:
mutualfundobserver.com/discuss/discussion/13089/a-not-so-golden-cross#latest
A fund that I have become impressed with and seems to be cut from the same cloth as GASFX and TOLSX (High Sharpe Ratio, High Alpha, and Low Beta) is GLFOX which holds small to medium size global (mostly foreign) infrastructure companies (with a concentration in Industrial and utilities).
If you are unfamiliar with GLFOX, GASFX or TOLSX make it a point to research them. I add to them with short term profits from other funds and hold them through thick or thicker.

Put a minimal 5k into GPROX just to insure ability to add later as an option.

Thanks David. Kind of what we've come to expect, I'd say.
Hey, Whitebox (my heavy) gets no love either. Note that its AUM has grown to $744M. Fund proper with reach 3 year mark in November.

What is everyone's opinion on this fund which seems to be very inconsistent performer. 3 years and 5 years returns are not that impressive at all.
Time to bail out? What are some alternatives ?
Looking for "mainly" (still open) US small cap (if need to replace this one)
Thank you in advance to all for your insights and time answering my query.

@Accipiter: Thanks for your thoughtful suggestion. Your suggestion will be forwarded to the Committee on Internet Discussion Boards that will pass it along to the Sub Committee on Mutual Fund Discussion Boards that will discuss your suggestion and rule upon it. However, because of the thousands of suggestions submitted to the various committee's it may be some time before any action can be taken. Looking at the committee calendar, it appears a decision cannot be made until some time in very late 2050.
Regards,
Ted MFO Committee Chairman

My core portfolio maintains 40% developed international and 10% EM at all times. Use the play money portfolio to hedge at times with leveraged funds or country funds. For example, currently 2x short positions in S&P 500 and Small cap and China, long Australia and Italy.

does it make sense to post this link daily as the link is always the same will be the same every single day and the highlights and upcoming events will keep moving to successive days?
maybe yes. maybe no.
so tomorrow when you post Chuck Jaffe's Money Life Show: 4/25/14
the link will be the same as this one.

This house is 45%, up from 35% last year on valuation. About a third of the 45% is U.S.-dollar hedged. I like the company, country, and culture diversification a lot; the currency risk, not as much.