We were in a huge bubble. The reprecussions will last at least as long as the bubble took to inflate, probably longer...see Japan...see 1929. I think you gave your son excellent advice. For confirmation, have your son go to the PIMCO website and review Bill Gross's November? and February comments ( since he runs the country's largest mutual fund maybe we should pay attention to him). Take comfort the the advice you give is correct because Warren Buffett doesn't see much value at these prices either. Nor Sir John Templeton. Nor Robert Shiller, Yale economist, author of Irrational Exuberance...speaking of which...we are still above the S&P valuation where Alan Greenspan pronounced the market irrationallly exuberant 6 years ago!!!! Plus as you properly point out Iraq, terrorism,... add pensions deficits, state gov'y deficits, airplane lease fiascos, telecom dark fiber...yikes..China/deflation. Stay low, cash will provide opportunities. Let's hope we are wrong..it will be a better life for our families...good luck.