Although contrarians understand cashflows and study fundamentals, many equity bulls unfortunately do not. A simple illustration may help, however. Virtually everyone is familiar with buying a house, and folks have no problem visualizing their annual income. Not too bad of deal, but not spectacular. The lack of understanding of simple investment fundamentals that have been true for 4000 years by today's perma-bulls is utterly appalling.
Every investor has an important choice to make.
Each investor must throw down their lot on one of two sides. The first side consists of over four millennia of historical examples, innumerable experts all throughout history, and rock-solid and logical fundamentals. The second side is comprised of 5 years of expert testimony, a single two year example, blue-sky dreams, and raw naked greed. For over a millennium, inventors have unsuccessfully tried to create a machine that can usurp the second law of thermodynamics, reverse the ubiquitous and irresistible force of entropy, and yield more energy than is fed into it.