I do agree that things overall likely will get uglier, but the stock market (unlike RE) isn’t historically expensive, so how bad can it get?
Much of the really stupid sh*t that made lots of money (until recently)was done with private equity. I’d heard from someone that knows far more than I that this was actually the reason the market had not been going up (last year). The big money was trading amongst itself with hedge funds and derivative trades.
Do you think the credit crunch, RE and such really will tank the market (by my crude definition, that would be retracing below its point one-year ago (~11k))?
