Valuation-Informed Indexing #39 — Stock Prices Are Cyclical: Here’s Why

I’ve posted Column Entry #39 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Stock Prices Are Cyclical: Here’s Why.

Juicy Excerpt: What is it about the boom-bust cyclical pattern that has made it so dominant for so long? I believe that there are two competing forces at work: (1) the Get Rich Quick impulse that exists in the heart of every human (and, thus, every investor); and (2) the economic realities that must exact financial pain on those who fail to rein in their Get RIch Quick impulses if the market is to continue to function.