One expert says an imminent 65% stock-market crash would be 'run-of-the-mill' — and explains why risks are greater now than during the tech bubble

of the dormant risks threatening to bubble up to the market's surface. And while equities have yet to receive the walloping he's expected, his cries are getting louder as bearish conditions continue to calcify., Hussman delivered a new spin on his long-standing bearish view. Not only is he expecting a stock-market crash in the region of 60-65%, but he also argues that such a meltdown would be completely normal by historical standards.

This scenario would require no negative market events of any sort. And considering how much turmoil equities saw in just the past week, this would seem to be an unlikely, if not impossible outcome. Another major red flag noted by Hussman is the nature of the stock market's overvaluation. It's well-known at this point that, by his favored measures, equities look the most expensive in history. This is borne out in the chart below, which is one of his favorites:

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Ho hum — a 65% market plunge would be ‘run of the mill,’ fund manager saysWhile stocks staged a remarkable comeback from Monday’s deep decline, they still closed firmly in the red. A day later, and the sellers are back at it. Long-suffering market bears, like John Hussman, have to be savoring this kind of action. After all, when things turn south, Hussman’s fortunes turn north. Define 'crash'. As long as it was fast it could be recoverable,... a prolonged downtrend would be devastating. $SPX $SPY
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