Some of the bulls out there say that stocks are cheap (and were cheap when the DJIA crossed below 8,000) when valued relative to next year’s earnings… the problem is most of those projected earnings are straight out of Alice in Wonderland and will be cut back.

Here is a very bearish take on it, which has more to do with replacement value of assets.  By that benchmark, forget Dow 7,000… we’re talking Dow 6,000!

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