Delaying the onset of a bear market is not without cost, however. Markets extend their rise. The higher they go, the harder they fall. Deeper even than in 1929. But this is the New Economy, they say.
Valuations have to be different.
No question about it. The New Economy will change the world. Just as electricity and the automobile changed the world. But the world in the future will continue suffering financial crises, recessions and business cycles, as it did before electricity was born. Because financial cycles are expressions of the exuberant side of human nature which goes wildly optimistic when good times last long, and is deeply depressed when the tide changes.