Plausible Denial

"We believe that far too much pessimism is reflected in stock prices. Central bank actions are already affecting interest rates and the ongoing combination of monetary and fiscal stimulus will allow the economy to eventually right itself." Sheldon Dyck, Lead Portfolio Manager, ATB Financial

Where do I start with this kind on nonsense? Here is another translation of Mr. Dyck's view:
Yes, we've had a big storm come through and rip the roof off our garage. Don't worry, the sun will come out, the birds will start singing, the flowers will bloom, the markets will rise, and we'll all be rich, rich, rich.

What he really means is "don't transfer your deposits elsewhere or we'll never get our bonuses".

If you look at P/E ratios from past recessions, they usually bottom out around the 6 to 7 level. This would translate to a DOW level of under 6,000 and a TSX level of under 6,500 which means another drop of 20% or so.

Sitting in cash looks real good right now.