QUESTION: Martin you continue to provide us with economics based on cycles and human nature far different than my economics degree taught me.
The recent mainstream press seems decidedly bearish on US Equities. Does this provide impetus for movement toward the phase transition and resulting bubble? Is the mainstream press generally on the wrong side of the curve?
ANSWER: Actually yes. The mainstream press try to pretend to be analysts but are far from it. Throughout the bull market going into 1929, they turned bullish only during the last 6 months. They called the high so many times it was pathetic. The Wall Street Journal went as far as to accuse Jesse Livermore of being bullish only to influence the Presidential elections. When they were proved wrong, they refused to ever quote him again.
So as long as the mainstream press is bearish, that is a good sign that the broader uptrend is still intact. They will mislead most people and the new comers have to pay their dues to join the club (lose money listening to mainstream nonsense). On the way down from 1929 high, they did not believe it would continue. It was always an interesting examination of the press v the market.