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A renowned market bear says investors should be 'braced for zero or negative total returns' over the next 10-12 years a?? and reiterates his call for a 67% stock meltdown

A renowned market bear says investors should be 'braced for zero or negative total returns' over the next 10-12 years a?? and reiterates his call for a 67% stock meltdown
REUTERS/Kai Pfaffenbach



John Hussman — the outspoken investor and former professor who's been predicting a stock collapse — says market participants should think twice if they believe the Federal Reserve will save them from a market crash.




By his calculations, if valuations revert to their historical norm, investors can expect a negative annual return of 5.18% over the next decade.




Hussman says it's likely that this cycle will end with "market losses on the order of two-thirds of value of the S&P 500."




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The bull market that started back in March 2009 has shrugged its proverbial shoulders at just about anything that was thrown at it: a polarizing US election, a Greek bailout, the prospects of nuclear war, an impeachment, a trade war, Brexit, declining earnings — you name it.
But if there's one person that thinks a market crash of epic proportions is long overdue, it's John Hussman, the former economics professor who is now president of the Hussman Investment Trust.
"The more glorious this bubble becomes in hindsight, the more dismal future investment returns become in foresight," he penned in a recent client note. "At the market open of Friday, January 24, our estimate of likely 12-year nominal total returns for a conventional passive investment portfolio (60% S&P 500, 30% Treasury bonds, 10% Treasury bills) fell to just 0.04% annually, below even the previous record of 0.34% set in August 1929."
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