A Minsky Review

April 2005: Judging from the level of complacency in the stock market, some of you may not care to make it to the second paragraph of this article -— Hyman Minsky warned us about times like this! Those of you who stay until the end will find a compelling case that four indicators portend a significant decline in the stock market and a rise in volatility before the end of next year (2006). For those with financial exposure to the stock market today, you may be compelled to act. For those of you that have already hedged your positions, this article will provide the insights as to when to increase your exposure again. And for the complacent readers, save this for later reference to explain “why.”