The measure is an illustration of investor enthusiasm for stocks vs. gold. It's not just industry or company-specific risks that frighten us. The enormous derivative exposure of the financial sector poses a much more dangerous systemic threat to the entire global financial system. The following article analyzes the data from the 3 rd quarter on the US banking system's derivative exposure and points out the tremendous risks that these positions present to the global economy and financial markets. Painful but Normal Bear markets are just as much a part of financial markets as bull markets.
Bear markets reflect the purging of excesses created in the previous boom times.
At some point during this bear market, stocks will be extremely cheap based on earnings, cash flow and book value. Investors may even re-discover the dividend yield. The following link is one view of secular bull and markets over time.