By Parke Shall
When you have been predicting a correction in the markets for the better part of the last year and the markets have done nothing but defy your predictions, you are left with two possibilities. The first is you can continue to double down on your prediction and the second is that you can try to be humble and withdraw your prediction. For us, we don't think now is the time to withdraw our production. We think the old adage that "the market can stay rational longer than you can stay solvent" is an appropriate way to think about the market right now. People are buying stocks and they don't even know why.
They're not buying stocks based on valuation. The Schiller PE ratio is now approaching 30X, an area it has only been several times in the past and an area that has usually been immediately followed…