Stock market crash: Why the recent rally is a trap, 57% drop coming - Business Insider

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A renowned market bear says stocks are setting classic trap before another steep plunge — and says the market is at risk of a 57% drop from current levels

— isn't prepared to give the same all-clear signal. He instead thinks current investor sentiment is falsely assuming that the ongoing market recovery will persist.

That "unusual combination" is increasing Hussman's anxiety over the overall well-being of the market — one he thinks is setting a trap. His view is informed by the four-part "phases of a bubble" economic model popularized by renowned academic"The current position of the market is reminiscent of the 'return to normal' trap in Jean-Paul Rodrigue's familiar chart of speculative bubbles," he said.

Hussman added: "My sense is that investors remain disoriented about where they actually are in the cycle."

 

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Ballocks

So buy now and buy again after the crash? We know a recession is here, the stocks just thought they'd keep going anyway.

A “market bear” predicting it to go down? Well that’s what a bear does. Traditional technical analysis hasn’t been very effective. The technicians are frustrated these days. Many were saying we’ll retest the lows.

Short sellers benefit from a falling market. Enough said

But in the long-term markets will get up again.

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