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

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 51%

مصر أخبار أخبار

مصر أحدث الأخبار,مصر عناوين

A notorious market bear who called the 2000 and 2008 crashes says a 60% decline in the S&P 500 is likely as high valuations and weak investor sentiment create a 'trap door' scenario

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.

لقد قمنا بتلخيص هذا الخبر حتى تتمكن من قراءته بسرعة. إذا كنت مهتمًا بالأخبار، يمكنك قراءة النص الكامل هنا. اقرأ أكثر:

 /  🏆 729. in EG
 

شكرًا لك على تعليقك. سيتم نشر تعليقك بعد مراجعته.

مصر أحدث الأخبار, مصر عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

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.
مصدر: MarketWatch - 🏆 3. / 97 اقرأ أكثر »

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.
مصدر: BusinessInsider - 🏆 729. / 51 اقرأ أكثر »

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
مصدر: BusinessInsider - 🏆 729. / 51 اقرأ أكثر »

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.
مصدر: CNBC - 🏆 12. / 72 اقرأ أكثر »

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.
مصدر: MarketWatch - 🏆 3. / 97 اقرأ أكثر »

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.
مصدر: KPRC2 - 🏆 80. / 68 اقرأ أكثر »