Long-time bear in residence, John Hussman, says investors are facing a “trap door”

 The manager says he’s finding it hard to get constructive on these “overvalued markets with ragged and divergent internals” — conditions that he notes were seen at 2000, 2007, and 2020 market peaks.

 What does it all mean?

MarketWatch 5 december 2022

https://www.marketwatch.com/story/this-long-time-bear-warns-of-a-trapdoor-situation-looming-for-the-stock-market-11670241965


When the time comes to ask the question – “What triggered the crash?” – remember that this is the least important question. 

A market crash requires nothing more than a shift in investor psychology from careless speculation to even modest risk-aversion.  

The important question to ask is “What drove the bubble?” That’s where the lessons are. 

The root causes of a crash are always the factors that nurtured and encouraged the “happy” period of carefree and irresponsible speculation that led to the bubble extreme.

John P. Hussman July 2021

https://englundmacro.blogspot.com/2021/07/what-triggered-crash-hussman-funds.html



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