Ghost of Igloi wrote:
This Week:
Dissolving Musical Chairs
Over the completion of the current market cycle, we estimate that roughly half of U.S. equity market capitalization - $17 trillion in paper wealth - will simply vanish. Nobody will “get†that wealth. It will simply disappear, like a game of musical chairs where players think they've won by finding chairs as the music stops, and suddenly feel them dissolving as if they had never existed in the first place. Moreover, even if U.S. real and nominal economic growth were to fully recover to their long-term historical norms, it would take 12-16 years of 6% nominal growth, with zero price appreciation in the interim, to bring reliable valuation measures back to their own historical norms.
By John P. Hussman, Ph.D.
President, Hussman Investment Trust
That's nothing more than another wild guess by Hussman. If history is any guide, he will be completely wrong again. It amazes me that there are Muppets out there who actually listen to this noob.