Kaplan today: "It is one thing to be euphoric when the market has experienced low volatility for several consecutive years, when the world economy is expanding, and when the savings rate is increasing. It is another thing to be euphoric when the worldwide recession
is spreading, when there has been a very recent period of high volatility, and when the U.S. savings rate is negative, as it is now
for the first time since 1938 (during the Great Depression). It is as though investors, who stopped carrying umbrellas for years when it did not rain, have recently experienced floods, hurricanes, and tidal waves, and yet continue to shun umbrellas, not to mention alternative shelter. Go figure! " |
