I’ve posted Podcast #165 to the “RobCasts” section of the site. It’s called I Was Wrong: There’s An Economic Reason Why We’ll See Another Stock Crash.
When prices fall from insanely overvalued to fair value, many businesses are destroyed. That forces prices down to insanely <i>undervalued</i> levels for a time. This process takes time. It may take years for us to complete it. It is not realistic to expect a recovery from decades of the promotion of Passive Investing to be completed with one price crash.
Financial Samurai says
Sorry Rob I think you’re wrong. The world has changed, and people are getting P-A-I-D again this year!
$734,000 per Goldman Sachs employee for 2009 anybody? Not bad! That doesn’t happen unless it’s a bull market, which we are clearly in.
Ask me to put new money in the market now? That’s a different question. But earnings are coming back strong!
Rob says
Thanks for offering a different viewpoint, Financial Samurai. It’s boring always hearing that same old fellow go on and on.
Rob
John Walter Russell says
Rob,
Jobs are supposed to return in 2012.
Have fun.
John Walter Russell