"The most historically reliable valuation measures are obscene here. We expect the market to lose nearly two-thirds of its value by the completion of this cycle, while still posting negative total returns over the next 10-12 years. In my view, Wall Street is completely out of its gourd. Research, evidence, and historically-informed analysis can fight ignorance only when people value knowledge. The problem is that human beings are wired to chase what they associate with pleasure, and to shun what they associate with discomfort. Recall the dot-com bubble. Recall the housing bubble. Investors, given enough pleasure in the moment, will find rationalizations that allow them to maintain ignorant bliss, even if the long-term consequences are repeatedly devastating."
John Hussman, Weekly Commentary 11/6/2017