I didn’t read the article but the way I read that excerpt he was acknowledging that the flip side of irrational exuberance could include some irrational pessimism.
Without irrationality the market wouldn’t distort very far up and it wouldn’t overcorrect too far down. Yet, those peaks and valley are what comprise the long term trendlines.
I wouldn’t say the pessimism right now is irrational, but at whatever point the price structure ventures down into undervalued territory a big factor in that will be irrational pessimism.
