It is inevitable the current cyclical expansion in the global economy and equity market will eventually end in recession and a related cyclical bear market. However, the typical late cycle excesses of confidence, and related investment and above-trend growth, that would set the scene for the next major cyclical downturn do not seem to be present yet (albeit that these are admittedly always difficult to identify before the event). Equity markets have in recent years been struggling through the financial and psychological aftermath of one of the biggest downturns in history. As in previous cycles, the excesses that caused the down-cycle remain unresolved well into the new up-cycle, leaving economies and stock markets vulnerable to ongoing corrections during this aftermath period when events conspire to shake confidence. Although these corrections in confidence and markets can be severe, history suggests that unless they are accompanied by significant policy error, they are unlikely to develop into another major cyclical downturn. They are in fact, more likely to prolong and protract the current economic expansion by interrupting the process by which fear is slowly forgotten and confidence is slowly regained. It seems reasonable to believe that we are still in the aftermath of the last major cyclical downturn rather than the prelude to the next downturn. The collective psyche will have to emerge from this aftermath period before it will have the confidence to start creating the new excesses that will beget the next major cyclical downturn in economies and markets.