limtex, you have not read well what he wrote, he did not address economic growth, he addressed valuations. In the period from 1966 to 1982, the economy continued to grow, with few intermittent recessions, yet, the Dow, for the whole period of 16 years did not go back above 1000, and since some of those years were quite inflationary, the real value of equities kept going down for those sixteen years, without the "calamities" you are suggesting. Right now, the valuations are too high, and the market in its wisdom will allow earnings to grow but stock prices to fluctuate in a range without major breakouts, bringing valuations back to the norm. Read #reply-13483082 for a post written two years ago on that same issue.
Zeev |
