Stock Market Crash: Expert Who Called '08 Warns of 'Long Way Down'

John Hussman says stocks need to fall another 51% to reach an acceptable equity risk premium.Other Wall Street strategists have warned in recent weeks of a historically-poor ERP.

The numbers in question for Hussman have to do with stock valuations, particularly relative to yields on risk-free Treasury bonds. "We presently estimate that a market loss of -26%, to the 2,900 level on the S&P 500, would presently be required simply to restore expected S&P 500 total returns to 3.4%, the present yield of 10-year Treasury bonds. A market loss of -51%, to the 1900 level on the S&P 500, would presently be required to restore a historically normal 5% expected return premium above Treasury bonds ," Hussman said.

Another key part of the equation for Hussman is market sentiment. According to his proprietary measure, investors are still wary of the market. A combination of high valuations and a poor outlook from investors is a recipe for disaster, Hussman said.

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Stock market news today: Resilience in US jobs market continuesUS stocks rise as fresh jobs data continues to show no sign of labor market weakness
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »

5 things to know before the stock market opens ThursdayHere are the most important news items that investors need to start their trading day. That’s 6 things now because of inflation! Number one thing to know- never let this woman speak until after 4 o'clock... “Yellen, meanwhile, told lawmakers that regulators aren’t considering a blanket guarantee for all U.S. deposits….” Meaning only those who are Democratic Party donors will be protected.
Fuente: CNBC - 🏆 12. / 72 Leer más »

STOCK MARKET NEWS: Tik Tok CEO testifies, Ford predicts $3B EV loss, Coinbase in SEC crosshairsStocks steady following global rate hikes, TikTok’s CEO to face Congress, Ford’s EV losses mount, new Starbuck’s CEO lays out challenges at coffee maker and SEC eyes Coinbase in crypto probe. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Fuente: FoxBusiness - 🏆 458. / 53 Leer más »

Asian Stock Market: Caution stems ahead of global PMIs, USD Index pairs losses, oil reboundsMarkets in the Asian domain are showing roots of caution as investors are shifting their focus toward the release of the global Purchasing Managers In
Fuente: FXStreetNews - 🏆 14. / 72 Leer más »

Stock market outlook: US households will sell $750 billion this yearUS households will sell $750 billion in stocks this year amid higher rates and sticky inflation, Goldman Sachs says
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »

Stock market news today: Traders assess bank concerns and interest ratesUS stocks end higher in volatile session as traders assess rate outlook and bank concerns
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »