Liudmila Chernetska/iStock via Getty Images With the market nearly 20% off its highs, it is rather easy to say that stocks are in a ‘bear market.’ However, this type of label is simply a snapshot and says nothing about future prospects for the market. The stock market is now fairly valued.
We expect that many investors, particularly short sellers, will realize several months from now that they sold at wholesale. Reestablish a 100%, fully invested position. -John P.
Hussman, Monthly Market Letter, October 12, 1990Over the following 25-year period, the annual total return of the S&P 500 averaged 10.1% So yes, we believe that the crash risk of the market is extremely high. The short term, however, is unclear.
Nothing in the market is certain, but we don’t know any other way to approach the market than to ask “What are the conditions now?” and “How have those conditions historically been resolved?” In this case, we have only one answer. – John P. Hussman, Monthly Market Letter, March 7, 2000 Last week, we noted in our weekly market comment that the market has recruited enough ‘trend uniformity’ to shift the Market Climate to a favorable condition.
As usual, we don’t forecast, we identify. Our view is not that stocks must advance, nor that the economy must expand. Rather, current conditions match those that have historically generated favorable market returns, on average.
– John P. Hussman, Monthly Market Letter, May 12, 2003 Given my general avoidance of f.
