John Hussman’s July market comment
I have not read ole’ Doc Hussman in years but I’ve had him linked at this site for many years and this morning took a look at his latest article. Same old Doc. Outstanding financial market realism.
When the collapse comes (and I suspect it will), don’t blame Fed tightening for bursting the bubble. Once “bubble” is in hand, “burst” is inevitable. Blame the decade of reckless monetary policy that encouraged the bubble in the first place.
My one critique of John Hussman is not actually a critique at all. As a fiduciary he is compelled to follow his own true views and manage accordingly. But that does not work for me and the tools I use to be more dynamic. There was a time I was a (less sophisticated) Hussman type, and that time saw me significantly under-perform bullish markets due to valid cautionary views that the speculative markets simply ignored. Hence I decided not to be dogmatic and instead to be able to split my thinking about what is in the rabbit hole and what is above ground.
So John talks of a collapse that I agree is probably coming. He notes several concerning macro data points, including this one.
I think the article linked at top is well worth your read. Valid and right minded analysis is always a good thing even if you decide not to act upon it in real time.
Hussman himself talks about the speculation the Fed has manufactured (err, where have you heard that before?) and is loathe to cow tow to it. But the way they’ve taken control of the markets and financialized economy, at some point you’ve got to play it, whether to the downside or much more often, the upside. Otherwise you go to perma-nowhere, which I grant you feels much better than the ‘due south’ that would be compelled for all casino patrons in a market liquidation bust.
Anyway, reading Doc Hussman got me thinking per the above. Check it out and maybe it’ll do the same for you.
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Hussman has been bearish t seems since around 1907. He will eventually be right.
Which is why I had to stop taking too seriously the perma-doom cult in general. Doc is forthright and honest. He’s also been too mechanical for a functional view of over-stimulated financial markets capable of anything that money printed from nowhere can instigate.
Hussman calls his article a “Market Comment”–with 7249 words acc. to my WP software. I guess he likes to impress his clients?