We're all exhausted and depressed, having skilled this week one of many worst inventory market declines in fashionable historical past.

I used to be there for the primary one, on Oct. 28, 1987, once I stood with my colleagues round our communal Quotran display whereas the market took a 20% jack-knife. 

Let's attempt to consider the place the inventory market would possibly backside.  This includes creating some framework to evaluate the implicit assumptions out there, the enterprise sustainability, money circulation and stability sheets of the businesses by which we make investments.

On the present value of two,300, round 32% beneath the Feb. 19 peak, the S&P trades at about 14 instances earnings for 2019.  If we assume that 2020 is a washout, and subsequent yr recovers to the 2018-19 stage once more of $165 per share, the market continues to be at 14 instances ahead earnings, which is usually...