John Hussman’s presents a message no one wants to hear because nearly everyone is too busy believing for the third time in 17 years that “It’s different this time”.
Last week Hussman wrote about Valuations, Sufficient Statistics, and Breathtaking Risks. This week it’s more of the same with his post Behind the Potemkin Village.
The markets are so overvalued now that Hussman expects a 60% decline from here.
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It's always different this time... and it never is.
ReplyDeleteIf we don't learn from history (and our mistakes), we are doomed to repeat them.
However, this bubble will not be caused by the same reasons as the last 2, and probably won't be quite as bad if it happens now.
The reason stocks are going hire, is that no other asset class is desirable. But if interest rates rise, look out below.
It will never end.
ReplyDeleteThe stock market will go up for ever.
The Bond prices will go up for ever.
The Interest Rates will stay low for ever.
It is a new world order.
One that is totally manufactured from whole cloth.
Enjoy the good times!