as they were ahead of the 1929 and 2000 market crashes. And he views the post-December rebound as the latest in a long series of bullish head fakes built on irrationally exuberant sentiment.
."Glorious half-cycle market advances leave investors vulnerable to catastrophe, because investors hold contempt for anyone who suggests there may be a cliff on the other side of the mountain."What kind of catastrophe is Hussman expecting? His expectation for a two-thirds loss in total market value is well-documented at this point.
The scatter plot below offers a look at how Hussman is thinking about the matter. It shows the relationship between the ratio of market cap to corporate gross-value added, relative to subsequent 12-year returns. As you can see, that ratio is currently close to the lowest on record.
I think 70%. worst then the 1929 crisis
Get lost
Highly unlikely, transition to 4.0 will take a few months, next world war could last only a few weeks or even days. But some mighty bubbles are bursting for sure.