What they don't seem to understand is that there are only so many morons with money to throw away at the casino in each cycle. And this cycle is over, so prices have to go lower until they find "value", which is difficult when profits are falling faster than stocks...
Rydex asset allocation: Bullish/bearish ratio
At the peak, the ratio was 29:1, now it's 5:1...
Global stock losses:
$12 trillion through August, and another
$8 trillion through January
Energy losses
250,000 jobs
Over $1.3 trillion
Mining losses
$1.4 trillion
Junk bond losses
$180 billion
IPO losses: One decade gone
Biotech losses: Two years of vertical gains
Leveraged Loan losses: Four years of gains
Earnings yield (E/P): Profits are falling faster than stocks...
Growth/value ratio aka. appetite for self-destruction...
