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The early data for 2013 shows that investors have been putting billions of dollars into equity investments.  Has the retail investor finally moved forward from the fear of the past and ready for risk?  The evidence so far suggests that this trend is beginning to transpire.  However, January data may be skewed due to bonus dollars and 401k contributions.  While the market is not historically expensive, it is not cheap either. Granite Group Advisors must reiterate that in a low growth environment,  one should not be expecting a massive P/E expansion, as we have been saying since 2010.  Our perspective: the market is fairly valued and market volatility will increase but if the flows into equity continue, the market may see a temporary push higher.