Déjà Vu: Is It 1937 All Over Again
We are not sure if we get a replay of 1937-a 50% market decline after a big rally from the low in 1932–but it feels a bit eerie to say the least. Now we have an extremely “overbought” stock market…false belief in a cyclical recovery…troubles in Europe…and rising tensions in Asia. I think a simple question is in order: Is risk skewed to the upside or downside? You know my answer.