I'd love to hear what you think. Here's what I think. The stock market is ultimately based both on investor perceptions and corporate profits. The latter have shown an unerring ability to rise steadily over time. I'm not sure there IS any answer to this question.
Some people seem to believe there is one, though.
Of course, I think it is very helpful to remain cognizant of the potential that the stock market MAY work like Paulos's little checked box. Fools have open minds, and should ideally admit to many more possibilities than most people have even thought of. Plus, their herd thinking is made more and more evident by the frequency with which other people go on to hastily cite these same historical examples, as if they're offering striking and original analysis. Another ten points. The Motley Fool.