Fundamentals
Financial markets have been extraordinarily challenging lately. Most investors were equally surprised by the market crash as well as the subsequent rebound. Both, the crash and the sharp rebound, did not surprise those who followed us here on Seeking Alpha. They were on top of both swings and know that we turned bearish on U.S. equities in early May. Long-term valuations and the business cycle remain a strong headwind for equities. Not even a single stock market correction that accompanied contracting business cycles finished within four weeks during the past 150 years. Moreover, the