Expect a bumpy ride in equity markets, at least until some semblance of investor rationality returns. Why have stock prices been beaten back to the valuation lows that followed the financial crisis of 2008? Yes, there has been a parade of bad economic news, frustrating political posturing and seemingly ineffective monetary policy. But the economy has grown, albeit at a reduced rate, and companies continue to produce strong earnings. Instead of the irrational exuberance of the past, we may now have irrational despair.