Quote Of The Day

The second paragraph is excellent.

"The book value of the DJIA is almost 3 while history says that 1.5 is a typical valuation. We should expect it to drop substantially below that during times of recession or depression.

It is important, if you wish to get through this period without losing everything you have, to deal with facts beyond those we have been brainwashed to believe by analysts on CNBC and a two decade bull market.

Almost any valuation, properly done, leads us to the conclusion that the market is headed substantially lower, assuming you believe we are in a true secular bear market."


Most people are using the last 20 years as a reference in which we've had a couple of blips (recessions) that quickly resolved themselves within a year or so and then it was back to normal, a bull market that went straight up. Don't expect the same this time around is what I'm trying to relay to those that are interested.