“Historically, when trend uniformity has been positive, stocks have generally ignored overvaluation, no matter how extreme. When the market loses that uniformity, valuations often matter suddenly and with a vengeance. This is a lesson best learned before a crash rather than after one. Valuations, trend uniformity, and yield pressures are now uniformly unfavorable, and the market faces extreme risk in this environment. There are also other risks. Historically, consensus economic forecasts have never correctly warned of an oncoming recession. Market action is profoundly more informative, particularly interest rate and credit spreads. Based on the most reliable set of leading indicators, a recession warning is now in hand. Our investment position does not rely on a recession to be effective, so we hope that this signal is incorrect. With earnings warnings and loan defaults already on the rise, investors should hope for anything but a slower economy.”
John Hussman – October 3, 2000
“I am emphatic that investors should evaluate their risk exposures and tolerances now, in order to allow for substantial further market weakness. Market conditions presently feature a Pandora’s Box of rich valuations, vulnerable profit margins, rising default risk, rapidly deteriorating market internals, failing support levels, and accumulating evidence of oncoming recession.”
John Hussman – January 7, 2008
Fun listen: Kurt Russell radio interview with clueless host on gun control:
http://hotair.com/archives/2015/12/11/kurt-russell-blasts-gun-control-i-think-its-absolutely-insane/
Where’s a good Snake Plissken quote when you need one?