Hussman On the Impending Bear Market
Latest Hussman:
"When one examines many market collapses in history, it is simply not the case that the bottom had to fall out of earnings or the economy. Yes, sometimes elevated profit margins retreated, but that’s really not what drives cyclical market gains and losses. Our own concern about elevated profit margins is not that earnings will be weak over the completion of the current cycle (though that increasingly appears likely), but that investors are using historically extreme profit margins and record earnings as if they are completely representative of decades and decades of future earnings, and are using those earnings figures as a sufficient statistic for valuation."
1 comment:
Hussman predicting a crash? Wonders never cease!
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