Stock Market Crash: 60% Decline is 'Likely' For S&P 500, Expert Says

Hussman says stocks remain about as overvalued as they were during the biggest bubbles in history.Over the long-term, stock performance is a question of simple math, saysHigher valuations mean lower returns, and vice versa. Right now, valuations remain at some of their highest levels in history, the president of the Hussman Investment Trust who called the 2000 and 2008 market crashes, said in a recent note.

Those valuations measures include his proprietary ratio of total market cap of non-financial stocks to revenue of non-financial stocks, as well as his margin-adjusted price-to-earnings ratio.As for short-term market performance, investor sentiment plays more of a role, Hussman said. Unfortunately, that's not looking great right now either.

"Our primary gauge of market internals remains unfavorable, based on uniformity and divergence of market action across thousands of individual stocks, industries, sectors, and security-types, including debt securities of varying creditworthiness," he said."A market collapse, at its core, is really nothing but risk-aversion meeting a market that is not priced for risk."

While Hussman acknowledges the boldness of his call, he said to look at history. Stocks are more overvalued relative to Treasury bonds than anytime since the late 1920 and early 1930s. Eventually, investors expect a greater return for the extra risk they're taking, and valuations fall.

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Meta Platforms stock rallies on results, Mobileye Global stock sinks and other stocks on the moveCaterpillar and Merck & Co’s stock rise after reporting quarterly results.
Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »

Wall Street investors recession bet may cause bond, stock market crashInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Fonte: BusinessInsider - 🏆 729. / 51 Consulte Mais informação »

Stock market investing: Global diversification is key in 2023A CIO overseeing $399 billion explains why it's imperative that investors make sure they're globally diversified in 2023 to avoid 'home country bias' — and where the banking crisis has created investing opportunities
Fonte: BusinessInsider - 🏆 729. / 51 Consulte Mais informação »

Here's why the stock market is having such a massive rally todayInvestors looked past what appeared to be a weak first-quarter GDP report on Thursday.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Fed pivot may not mean a stock market rally, says David RosenbergHistory shows that a pause in the rate-hike cycle doesn't guarantee a stock-market rally, according to Wall Street veteran David Rosenberg.
Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »

Stock market today: Meta's surge fuels big Wall Street rallyWall Street rallied to its best day since January after Meta Platforms became the latest Big Tech company to blow past profit forecasts.
Fonte: KPRC2 - 🏆 80. / 68 Consulte Mais informação »