I fully realize that âcrashâ is a very strong word full of all kinds of very definite connotations, but I really canât think of any other way to articulate what is happening in the mighty flagship US equity index other than calling it a âslow-motion crash.â The S&P 500 reached its all-time closing high and since then the might S&P has plunged! Whenever the wizards at the Fed run the proverbial printing presses to create more fiat dollars out of thin air, those inflationary dollars have to seek out a new home and a great deal of them begin bidding competitively on the already overvalued US equity markets. It is no coincidence that the S&P 500 bubble really ignited after the Fed began aggressively goosing US money supplies last year!!! It will astound future historians to no end that the Ben Bernank, a famous and brilliant student of economic history, told the world that the markets were dangerously overvalued in 2007, and then proceeded to not only do nothing about it, but throw the credit taps wide open in response to various global âcrisesâ and in effect create what is probably one of the greatest and most destructive equity bubbles in history! Pretty much every market technician on the planet is marveling and sweating over the gargantuan multi-month âhead and shouldersâ formation the S&P 500 broke out of. Any way you slice it though, the fundamental and technical case for the S&P 500 is certainly for another serious downleg approaching, probably not carrying us to the ultimate bottom, but definitely obliterating another significant percentage of already bleeding investorsâ scarce capital. Once the mighty index trades below 1000 or so for a few weeks, the selling pressure will probably intensify immensely as fear increases and investors and traders decide discretion is the better part of valor for now. While us private investors canât save the world, we can zealously try to transcend the real-world of popular opinion on the markets. Rather than living in the confusing world of Obama's and Bernanke's lies and perpetual promises of âjobs" or the profit recovery will roar forth ânext quarter,â investors can seek to understand the markets as they really are. The markets could not care less about you or me, they just exist. Only by understanding the markets in their actual strategic historical context, with mighty cyclical overvaluations giving way to gaping cyclical undervaluations over decades, can investors successfully beat the market year after year. The few investors who do not believe Obama or Bernanke are the contrarians, who fervently strive to understand greed, fear, valuation, and history and do not buy into all the hype and obnoxious lies that mainstream investors eagerly lap up like famished kittens. Only a relatively small number of contrarian investors truly seek to understand the markets while the rest of the investors are trapped inside, by their own choice, and have no hope of escape, blinded by their own delusions.