Valuations, Sufficient Statistics, and Breathtaking Risks
"Current extremes present what I view as one of the three most important opportunities in history to defend capital. My sense is that many investors will squander this opportunity until yet another bubble implodes. To be very clear about my estimate of that risk, I expect the completion of the current cycle to wipe out the entire gain of the S&P 500, in excess of Treasury bills, all the way back to March 2000, and more likely back to roughly October 1997. That outcome would not even take our most reliable valuation measures below historical norms that theyâ€™ve approached or breached by the end of every market cycle in history."
By John P. Hussman, Ph.D.
President, Hussman Investment Trust