Links

The inner lives of animals are hard to study. But there is evidence that they may be a lot richer than science once thought. [H/T Will] (LINK)

Related previous post: The Worst Crime in History - by Yuval Noah Harari

Bruce Greenwald Resource Page (LINK)

Don’t Break Up the Banks. They’re Not Our Real Problem. - by Steve Eisman [H/T ValueWalk] (LINK)

The above also reminded me of a recent Eisman interview which I don't think I linked to yet, HERE, with the excellent quote/advice below.

Is there any wisdom you can impart to average investors? 

Do your own homework. I can’t overstate the importance of this. When things start to go bad, speaking to the management of the company may be the worst thing you can do. You can walk away thinking things are okay when in fact they’re not, because seeing outside your own paradigm is sometimes the hardest thing to do.

Stocks That Triple In One Year (LINK)

Hussman Weekly Market Comment: When Stocks Crash and Easy Money Doesn't Help (LINK)

Credit default swaps continued to soar last week, particularly among European banks. Given that risks surrounding China and the energy sector are widely discussed, European banks continue to have my vote for “most likely crisis from left field.” 

With regard to the stock market, I suspect that the first event in the completion of the current market cycle may be a vertical loss that would put the S&P 500 in the mid-1500’s in short order. That area is a widely-recognized “role-reversal” support level matching the 2000 and 2007 market peaks, and would at least bring our estimates of prospective 10-year S&P 500 nominal total returns to about 5%, which seems a reasonable place for value-conscious investors to halt the initial leg down.