[quote=Arraya]It’s all driven by emotional/irrational behavior which by human nature herds. This next down trend, if it indeed has started, should go throughout 2010 and overcorrect to the downside.[/quote]
“Should” being the operative word. Lots of things that “should” happen in financial markets don’t.
As Grantham has pointed out, the only certainty in all of finance is mean reversion – eventually. The degree to which assets should or shouldn’t over-correct is pure speculation.
