Gruntz wrote:
You have me confused with Igy who is the real Captain of the Muppets (aka his clients). Also, Igy will be peeved with you for disparaging passive investing given that his guru John Hussman is a believer.
"Investors and even financial professionals rarely recognize asset bubbles while they are in progress. As the price of a financial asset rises, investors have an increasing tendency to use the past returns and the past trajectory of the asset as the basis for their future return expectations. The more extended the advance, and the higher valuations become, the more stable and promising the investment can appear to be, when judged through the rear-view mirror. That extrapolation was at the root of the tech bubble that ended in 2000, and the mortgage bubble that ended in 2007. It is also at the root of the very mature bubble that has again been established today. The exodus of investors from flexible investment disciplines to passive investing and indexing, at valuations that are among the most obscene in history, is a symptom of a performance-chasing mentality dressed in the clothing of prudence."
--John Hussman, Weekly Commentary 2/6/2017