The following progression serves to sum up regarding the upswing of the market cycle. It shows how cycles in economics, profits, psychology, risk aversion and media behavior combine to move market prices well beyond intrinsic value, and how one development contributes to the next. The economy is growing, and the economic reports are positive. Corporate earnings are rising and beating expectations. The media carry only good news. Securities markets strengthen. Investors grow increasingly confident and optimistic. Risk is perceived as being scarce and benign. Investors think of risk-bearing as a
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