Sunday, February 26, 2012

More on Hussman

Followup from the comments section of the previous post.

Hussman is beating the market because he has world-class macro sense regarding valuation and sentiment. I wouldn't bother reading or mentioning his letter if I didn't think he was incredibly competent at this. It's why we link to his market commentary virtually every week.

However, his stock portfolio was shockingly bland and uninspired.

Pepsi AND Coke? Three newspaper stocks? Starbucks? Huge pharma overweight (very troubled sector; probably the next subprime). Solar stocks (come on!) Microsoft (tired, dying monopoly).

No oil *services*, period. He is something of a frustrated academic - as Mark mentions.

1 comment:

Walter said...

I'm referring to the "HSGFX equity investments and cash equivalents only (unhedged)" line in the chart. I think that at least shows some stock selection skill, and the macro skill would show up more with his hedges. Just a guess though...