Tomas..some very intersting points....thank you for the article....

Tomas..some very intersting points....thank you for the article. Of course we knew the markets were overvalued with tech stocks selling at 40x book value and the general market selling beyond two standard deviations from the mean...well into correction territory....and has been for a long time!!! However it would seem that we all like walking on a tightrope!!!!

The problem with higher and higher risk in the broad market is that until something triggers a correction... it's something that "Might Happen?" sometime?

Unfortunately we are all frogs in a slow cooking pot..I would imagine few will jump out In Time

Investors as always are like the smoker who never expects any problems to hit him/her and resolves his dilemma in the Stockmarket by saying I'm well diversified!!!!

I'm reading a very enjoyable small book by Howard Marks called "The most important thing".It's very easy to read and it covers a lot of very important things.I recommend it to you.

I would add that having been through quite a few crashes and having witnessed huge pull backs in shares of very high multiples of Book Value and of huge PEx like US tech stocks and good old Japan with PEx exceeding 50x prior to 1987. Let's say I have learned to play on quiet streets and avoiding busy highways!!

Today I have always erred on the side of caution and only purchase below book value like Pen is today ,at a book value of $1.85 and I hold very few shares in anything beyond three times book.I find this consoles my fear of risk in the Stockmarket Game.

All the Best to All.