It never ceases to amaze me that investors seem to need absolute confirmation from an organised body before they are prepared to countenance what is sitting right in front of their eyes.
Today we had markets falling significantly - why? Well supposedly because the World Bank has cut its forecast for global growth for 2014 and 2015.
Anybody to whom this is a revelation hasn't been paying attention.
It's quite clear that global growth has stalled and, as much as many people are determined to lay the recent weakness in the oil price at the feet of a group of geopolitical Machiavellian players, there is another reason why oil falls - always - and that is a slowdown in economic activity.
Now we see copper heading in the same direction and this is suddenly 'news' to people because the World Bank reduces its forecast for 2014 growth by 0.4%.
If this isn't a lesson to anybody who decries the value in contrarian investing principles then they aren't paying proper attention.
US equities ARE hugely overstretched given the underlying economic situation in the USA. Gold IS hugely undervalued given both the supply & demand dynamics AND the wanton abandonment of monetary prudence. Most Government bonds are at utterly absurd valuations and WILL cause enormous losses and 'growth' in China is nowhere near 7%.
But don't take my word for it... wait for the World Bank to tell us...