Legendary investor warns again that U.S. stock market bull market may be more extreme than 1929 bear market

John Hussman, president of Hussman Investment Trust and legendary investor, once again issued a warning about U.S. stocks. He emphasized that the crazy bull market in U.S. stocks is coming to an end because overly optimistic investors have pushed the stock market to the most extreme valuation in nearly a century. .

John Hussman, president of Hussman Investment Trust and legendary investor, once again issued a warning about U.S. stocks. He emphasized that the crazy bull market in U.S. stocks is coming to an end because overly optimistic investors have pushed the stock market to the most extreme valuations in nearly a century.
Hirschman had accurately warned the market in the past, in 2000 and 2008.
However, Hirschman has been predicting another crash in U.S. stocks since 2013, and so far U.S. stocks have not experienced a plunge similar to that of 2000 or 2008.
Regarding the recent rise in U.S. stocks, Hersman said the rebound was mainly driven by \”a certain impatience and fear of missing out\” among investors and that conditions within the market looked \”unfavorable.\”
Hussman\’s firm expects the S&P 500 to underperform Treasuries by 9.3% annually over the next 12 years, according to Hussman\’s internal metric.
This is the worst 12-year performance the indicator has predicted, even worse than 1929 when the market plummeted 89% from its highs.
\”Current market conditions statistically look more like a major bull market peak than at any other point in the past century,\” Hersman said.
\”Given the combination of extreme valuations, adverse market internals, and dozens of other factors that have historically been the most \’top-like\’ we have a bearish outlook and are comfortable with risk aversion.
In the past, in March 2000, Hirschman predicted that U.S. technology stocks as a whole would plummet by 83%. As a result, the Nasdaq 100 Index fell by exactly 83% from 2000 to 2002.
In April 2007, Hirschman predicted that the S&P 500 would fall by 40%. From 2007 to 2009, the index fell by 55%.
He did not put forward a forecast figure this time but he had previously warned that U.S. stocks appeared to be in the \”most extreme speculative bubble in U.S. financial history\” and added that a drop of up to 65% would not surprise him.
Many retail investors are also bearish on stocks with only 39% of investors saying they are bullish on the direction of stocks over the next six months, according to AAII\’s latest investor sentiment survey.

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