From Marc Faber's most recent Gloom, Boom and Doom Report:

"Equally, I don't think there is a clearer indicator of the dire state of the economy than the decline of the S & P 500 from 1576 to 1260 despite very aggressive rate cuts since September 2007."

This is crucial to understand. The economy is not working the way it has for the past generation. Lowering of interest rates has always been a tool used to boost the economy and the markets. It is not working this time. The situation has changed. Things are working differently. This is not just a little significant. This is very, very significant.

Also from Faber: "Moreover, when Big Changes do occur, they bring about an entirely new set of threats and opportunities. Therefore, investors and businesspeople need to adjust their thinking and actions according to the changes, and reorient their strategies and rebalance their portfolios...Only a high level of adaptability, and an understanding that the rules of the political, social and investment games have changed, will ensure success."

The game has changed entirely over the past year. Like baseball, life is "a game of adjustments." Most people have a very, very hard time adjusting to things. Do not let this happen to you. If you have a hard time rearranging your thinking then fight against that with your intellect.

You cannot get yourself out of problems by using the same type of thinking that got you into them in the first place. In the immortal words of Steve Jobs, "Think Different!" and conquer. Bull