The key questions can be boiled down to two: how are things priced, and how are investors around us behaving? Assessing these two elements — consistently and in a disciplined manner — can be very helpful. The answers will give us a sense for where we stand in the cycle. In closing on this subject, I want to repeat something I’ve been harping on: even the best of temperature-taking can’t tell us will happen next … just the tendencies.
