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Here We Go Again

July 30th, 2014 - 10:31 am

Chart of Doom

It might be time soon for the bears to come out and play:

John Hussman is going where few market watchers are willing to venture: He’s calling the current trading environment a full-fledged bubble, one that is inflating to extreme proportions.

“Make no mistake – this is an equity bubble, and a highly advanced one,” the bearish portfolio manager wrote in his weekly commentary. “On the most historically reliable measures, it is easily beyond 1972 and 1987, beyond 1929 and 2007, and is now within about 15% of the 2000 extreme.”

The main difference between now and 2000, he says, is that bubble was “strikingly obvious in technology.” This one, he contends, is spread across many sectors. “That makes valuations for most stocks actually worse than in 2000,” he says.

How much money can we print and borrow, anyway?

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All Comments   (2)
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My retirement investments keep going up and up, and I figure it's just so much play money. I mentally discount the asset values by about 40%, hoping to avoid the urge to jump off a high place when reality returns. But maybe 60% would be on the safer side...
30 weeks ago
30 weeks ago Link To Comment
Don't make it a challenge to them. "The Black Obelisk" about the interwar period starts off with an employee arguing with his boss about a raise to buy a tie. Towards the end there's an average German horse butcher (an actual respectable profession) going off to hear an Austrian corporal. . .
30 weeks ago
30 weeks ago Link To Comment
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