Thanks for digging out the research on Piper Jaffray. You reminded me of something. The one thing that does not make this a Bear Market is the fact that so many companies performed extremely well this quarter. Not just well...EXTRAORDINARY! In most Bear Markets, there is weak corporate performance. Outside of Subprime exposure, we are seeing just the opposite.
<i>"Outside of Subprime exposure, we are seeing just the opposite."</i> Nothing is outside of subprime exposure. That's the problem for bulls. A domestic credit crunch sparked by that becomes a global credit crunch going forward. Many companies performed brilliantly thru a time of cheap money. What will these (and most) companies do when their warm bath of liquidity swirls down the drain? Stocks aren't being priced at past earnings or forward guidance. That was already built in. They are being repriced at expectations for what happens when liquidity dries up. Forward expectations based on a completely new scenario. * Stock markets do not go straight up endlessly without bear market corrections. Corrections don't always end in two weeks, followed by new market highs post haste. Stocks may very well churn sideways and crush lower for months or even years to come. Sooner or later they shall. Those who live in denial of that absolute fact will shift all of their wealth to traders who understand and embrace the reality of a two-way Street