Guess who was better off at this stage following the beginning of the crisis. The investor in the Great Depression? Or, the investor today?

The point of a correction is to correct.

Let’s see, what happened this summer?  Easy question.  The recovery went missing.

John Mauldin used to write about things like P/E ratios, secular bull and bear markets, valuations, and all of the things we used to think about in the Old Normal.  Now, the New Normal has to have its turn first.

In the US, half a million Americans filed for jobless benefits last week -- the highest number in nine months.  At this point in a typical recovery, job growth should be strong.  Instead, it is shockingly weak.

What might Bernanke's speech have said or implied that triggered the market response that we have witnessed so far today?

Investors are waking up. They are wiping the sleep from their eyes. Behold! No recovery.

Eventually, investors are going to realize that the discussion of a "recovery" is nonsense. The economy can never recover the pace and frenzy of the bubble years.

The Fed has already said it will leave its key interest rate at a very low level for a very long time. The US Treasury has already announced a budget with more than $1 trillion of fiscal stimulus in it.

Mike Paulenoff believes that the global equity markets are in a leadership transition from west to east, or from the U.S. to China.