The correction phase, however, *will* happen eventually.
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How do you know that the largest part of the correction didn’t already happen (when the S&P was almost 25% below fair value – albeit for a short period)? You generally seem more sure of everything than I am of anything.
Lots of companies have raised tons of capital in recent months, which puts a floor on whatever correction will take place. That’s Reflexivity 101. I wouldn’t be surprised to see the S&P revisit 750… but I think it’s unlikely that it blows through the prior low of 666. But, I could be wrong – unlike you, my crystal ball is hazy.
What I do know is that the financial markets are designed to make folks bullish at the top, bearish at the bottom and confused in between. They are generally successful at that.
