Set forth below is the text of a comment that I recently posted to the discussion thread for another blog entry at this site:
“If the CAPE value drops to 8 and then remains in that neighborhood for five yeas, people are going to start asking questions”
Why would they? There is always a named trigger. If the current environment drops more, it is blamed on the virus. You lose.
If the CAPE value drops to 8, I will be saying that the true value of each investor’s portfolio is two times its stated value instead of what I am saying today, that the true value of each investor’s portfolio is half of its stated value. I will be telling people that their portfolio is worth twice what the Buy-and-Holders are saying it is worth. That’s a big difference.
Most people hate the tactics that you Goons employ. That’s why we have laws against them. So why do they let you get away with all the garbage? It’s because they can’t stand thinking that their portfolios are worth only half of what they have been led to believe they are worth. So, even though they don’t like the abusive stuff, they tolerate it because at least it shuts that Rob Bennett fellow up.
Nothing that I say will be threatening to people anymore once prices have fallen. Get Rich Quick approaches don’t have nearly the same appeal after they have failed. And research-based approaches come to possess more appeal when people are able to see how they would have helped them if only they had had a chance to learn about them. People are going to be looking for people to blame after the next economic crisis. No offence, but I think you Goons are going to land at the top of most people’s lists.
But we’ll see, in any event. I do wish you the best of luck with it.
Rob
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