It is starting to look like the .com 'bubble' was just the entree to what is going to be the biggest stock bubble in US history. Futhermore, the GFC is looking more like a blip in a trend that will see people pay more for a dollar of earnings than they ever have before or, perhaps, ever will pay again.
Fifty percent declines are a matter of 'when', not 'if'. However, for the CAPE10 to get back to its mean of 16, we would be looking at a sixty percent decline from these levels. Completely unthinkable, in the current environment. Actually, I only check the markets once a month now, because it is guaranteed up.
It makes sense, though. There is no country more qualified to give birth to the mother of all bubbles than the mother of the stock market itself, the USA. Furthermore, there is no other time in history when the world's population has been more collectively brainwashed into buying up stocks than today.
That said, however, if it never pops, then it is the 'new normal', rather than the mega bubble. You know, it is normal to pay top dollar for something just because its price keeps going up. Even though, if the price started to go down, there would be no floor, because asset values are dependent on the bubble itself.
You can't write a book this good. It is going to be an absolute doozy!!
