Markets go up, markets go down, but markets ALWAYS have a long-term median value which remains relatively constant over the decades. If a market is significantly above or below that median, you can be sure that a correction will occur.
Today, the Shiller PE stands at 24.74. The long-term Shiller PE median is 15.88. We're 50% overvalued. Just as telling, since 1990, financial markets have hovered above their historical median 90% of the time, with only one massive correction (2008) briefly taking us below the median.
It seems that our financial markets have been successfully disconnected from value-reality since the later 1980s. This means that our financial markets are decreasingly reflecting collective values, while increasingly reflecting special interests. This correlates with the profound drop of middle-class wealth beginning in the 1970-1980s.
I don't blame Wall Street. I blame you, me, and everyone reading this comment for allowing our political system to become an overt Wall Street proxy, a revolving door of special interst lobbying. If WE don't fix the mechanics of political-corporate incest, these cycles of financial excess will only worsen.
Please add reliable good information that would help others in such way.This post is exactly what I am interested. we need some more good information. www.australiajobstoday.com/
…created this silly game we are playing today, have no morailty and only greed and again why they have "killed the goose who lays the golden eggs" are beyond me. A tit for tat story that has me beaming with joy. Enjoy http://www.zerohedge.com/node/477013
It's the kind of story that if it catches on will flood the market with all the hidden and bank held properties and drive down the costs of these homes as it should, and make them truly affordable to those wage earnings who haven't seen an increase after inflation in their take home pay. The Banks, they take the hit and all is well with the world. OH!, the webs we weave when we look to deceive.