Current valuation extremes combined with what hussman calls unfavorable market internals and various warning syndromes create a substantial downside risk. If we put words into the market's mouth, it's pricing in a soft landing and the fed is near the end. We've been calling that the immaculate disinflation. That's not how it works. . And even if the market doesnt crash, hussman thinks stocks are priced to.
This optimism is partly driven by an improved macroeconomic landscape compared to the early 2023 predictions of a looming recession. 5/ here is what people are calling a new bull market. on our most historically reliable measure, equity valuations are more extreme than at any point in u. s. John hussman, a seasoned investor and phd in economics from stanford university, has made a name for himself by predicting market crashes. He warned investors not to expect much. While he admonishes investors against market timing, he does advise that if you are going to try to time the market you should buy when everyone else is fearful, and sell when. In this post i include the most useful excerpts from hussman's excellent piece; Definitely give the full thing a read if you have the time he gives a thoughtful but concise analysis of many.
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