In November, I outlined (S&P $2,100: The Perfect Short) why August’s bounce was representative of the ‘return to normal’ phase in a boom bust cycle (below), as the underlying fears driving the sell-off were viewed as transitory. Now, we see those fears were not transitory and have led participants to question their assumptions, referred to as the ‘twilight’ period of a bubble. This questioning has accelerated over the past month, leading to scrutiny of the underlying fundamentals. It is my view that participants are just scratching the surface and...