It's basically a monthly chart of the Nikkei from 1984 through to a few months ago. Collective decision making. Clearly human greed and human fear cross the span of cultural differences. As you would imagine, we will keep you updated on the action ahead. One last comment, and we will be talking about this extensively in the future, the Nikkei is a demonstration of the concept of non-linearity we keep harping on.
Bear markets are a process of confidence destruction.
They do not happen in straight lines. The 1990's chart of the Nikkei as well as other examples of our markets seen in the 1970's and 1930's suggest that when bubbles pop, the investor mindset needs to change from one of buy and hold to one of trading waves of subsequent optimism and pessimism in the following years. Unless we are simply dead wrong, this is the only way money will be made for a time in the years ahead. Be willing to challenge the most solemn beliefs of the consensus. The public is not selling their funds.