NEW YORK (TheStreet) -- The Dow Jones Industrial Average is up more than 25% this year and closed at an all-time high on Thursday. Here to talk about the market is Nicholas Colas, chief market strategist at ConvergEx.
Colas suggested that the lack of fear has helped drive equity prices higher in 2013.
Because the Federal Reserve's intention is to push investors to riskier assets, it no longer makes sense for investors to be in bonds or fixed income for the time being, he added.
Likely aiding more conservative investors in the ride higher is the lack of volatility in the market or any sustained pullbacks.
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However, a pullback will eventually happen, Colas said. Usually, the only thing that ends a bull run is a recession, or the fear of a recession.
The only fear now though, seems to be regarding the Fed's eventual tapering of quantitative easing.
He suggested that Yellen, the assumed chairwoman of the Fed, is aware of the volatility that tapering talks have caused.
Colas concluded when, not if, tapering begins, it'll be done slowly and cautiously by the Fed.
-- Written by Bret Kenwell in Petoskey, Mich.