Rising prices vs. market worries

The US' finances are in big trouble, and it's a similar story in most of the other Western developed countries. Nevertheless, the stock markets are chugging along, suggests Pamela and Mary Anne Aden, editors of The Aden Forecast.

But are things really getting better? Unfortunately, the answer is yes and no. In some areas, the economy is indeed improving, but looking under the surface it's not a pretty picture.

Debt is exploding and it's keeping a lid on growth. It also means more and more dollars are being created out of thin air to pay for the growing, ongoing expenses.

So what should you do? It's important to be flexible, open and accept the markets for what they are. Recognize that markets aren't as free as they were. Diversify your investments, ideally geographically as well.

You want to keep some core holdings in gold because it will offset the decline in the U.S. dollar, which will eventually become worth less, as it has over the past few decades.

Keep in mind, this change isn't going to happen overnight. It'll take time but we're fairly certain what we've seen so far will likely continue. Why? There have been no fundamental changes to indicate otherwise.

Meanwhile, the U.S. stock market is on a roll. It keeps hitting new highs, it's super bullish and it's likely headed much higher. In fact, U.S. stocks have surged nearly 20% so far this year. This makes them a top global performer, pretty much across the board. Meanwhile, the S&P500 has chalked up 25 new record highs in 2013.

Reinforcing the bullishness, two Dow theory bull market signals were triggered this past month when the Dow Jones Industrials and the Dow Jones Transports both simultaneously hit new record highs.

We know this doesn't seem to make sense. But the market doesn't care. It's ignoring the bad news. Instead, the stock market is focusing on the Fed.

The stock market loves the Fed's ongoing easy money. It thrives on it. And the fact the Fed again said they're going to leave their monetary stimulus in place was all the market needed to embark on