Hussman Strategic Growth Fund
In the old days, you could blame your stockbroker or fund manager for losing your money. Now that your stockbroker is your phone and your fund manager is an index, it’s a lot harder to point your finger at somebody else.
If you’re left with no one to blame but yourself, the obvious way out is denial—especially at times like this, with stocks down about 8% so far in 2022. Individual investors specialize in denial. So do professionals.
That’s because of cognitive dissonance, the tension that arises when beliefs and reality collide. You believe you were right to buy that stock; now it’s down 75%, suggesting you might have been mistaken.
Let’s visit John Hussman, portfolio manager of the Hussman Strategic Growth Fund, with roughly $400 million in assets. The fund is up 10% this year, outperforming the S&P 500 by 18 percentage points—but trailed the market in nine of the previous 10 years, according to Morningstar.
Jason Zweig WSJ 18 February 2022
Why is it so hard to accept that speculative bubbles can burst?
John P. Hussman February 2022
https://englundmacro.blogspot.com/2022/02/why-is-it-so-hard-to-accept-that.html
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