In his recent market commentary titled – Pushing Your Luck, John Hussman explains why the S&P500 could drop by two thirds of its January 2022 peak. Here’s an excerpt from the commentary: Unfortunately, the rewarding gap between underlying risk and inevitable outcomes can encourage people to persist in reckless behavior. … Read More
John Hussman: What Is The Right Discount Rate?
In his latest article titled – Quit While You’re Ahead, John Hussman discusses what is the right discount rate. Here’s an excerpt from the article: One of the most overlooked and misunderstood aspects of investing is this: the rate of return that you use to discount future cash flows to … Read More
John Hussman: Revenues Are A Better Sufficient Statistic Than Year-To-Year Earnings
In his latest article titled – Top Dollar For Top Dollar, John Hussman explains why revenues are a better sufficient statistic than year-to-year earnings. Here’s an excerpt from the article: We’ll begin with an observation, followed by a broad range of historical evidence to demonstrate it. Across decades of market … Read More
John Hussman: Return-Free Risk
In his latest market commentary, John Hussman discusses return-free risk. Here’s an excerpt from the commentary: In an economy where the Fed has lost every systematic tether to common sense, empirical evidence, and concern for financial stability, it’s worth beginning this first market comment of 2022 by recalling the ways … Read More
John Hussman: Fish Don’t Know They’re In Water (Investors In A Market Bubble)
We’ve just finished reading a great article by John Hussman at Hussman Funds called The Music Fades Out in which Hussman discusses current market conditions and provides a great illustration of the changes in investor psychology during market bubbles. Here’s an excerpt from that article: Fish don’t know they’re in … Read More