I recently posted Entry #9 for my Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called Stocks Are Not Worth Buying Today.
Juicy Excerpt: There’s no guaranty that history will repeat exactly. But there’s good reason for anticipating that it will at least rhyme. It’s not an accident that times of insanely high prices have always brought on times of insanely low prices. Insanely high prices cause millions to believe that they possess far more in the way of real wealth than what they really do possess. That belief causes millions of bad financial decisions; bull markets make people spend more than they can afford to spend. When people realize that they have been making poor financial decisions for years or for decades, they panic. Panic causes insanely low stock prices.