If you look at a long term chart going back to early 1900’s, the overall general uptrend in the DOW should have put us at 10,500 right about now. This would be an historically normal range along the long term trend line, but the markets never fully corrected after the Nasdaq bubble burst. Investors rolled their money over into an already booming real estate market, which protected a bit of their false sense of an ever increasing net worth….which kept investors from total liquidation in the stock market at that point. It may hurt, but this is just the correction we should have seen then.
Why is it that investors have acclimated to thinking that booms are the norm, and anything less than a boom must be caused by fraudulent activity, terrorizing short sellers, or faulty regulation.
Spoiled kids whine for more candy, and then whine more when they are coming down from their sugar rush after they got what they wanted.