"We should remind you that just because stocks were the place to be for the last 100 years doesn’t mean they will be a good place to be for the next 100….or even the next 10. You see, in the investment world, there is always ‘more to the story.’ Most of the stock market gains of the last 100 years have come in the years since 1982. And the backstory of those years is the tale of a credit expansion gone wild.
Of all the things twisted and perverted by the great credit expansion, investors’ perceptions are at the top of the list. The money poured in; almost all assets rose in price. And investors – watching this over 3 decades – came to the conclusion that this is just the way it works.
It’s not. The problem with credit expansions is that they are always followed by credit contractions. And the bubbly stock prices you see at the end of the expansion phase turn into the flattened out prices seen in a depression."
from The Daily Reckoning