John Hussman explains the math behind his call for almost nonexistent stock returns over the next 20 years.
"At extreme valuations, it's important to remember that the completion of a hypervalued market cycle can wipe out every bit of the stock market's total return over-and-above T-bills, going back not just a few years, but for over a decade," he said in a recentHe continued:"Within the 80-year period from 1929 to 2009, the S&P 500 took three long, interesting trips to nowhere, accounting for 53 of those years , underperforming risk-free Treasury bills after all was said...
If those years sound familiar, that's because the former coincided with the worst economic event the US has ever experienced, where the market plummeted 86%. The latter is congruent with the bursting tech bubble, an event that lopped 50% off of the S&P 500. The following chart depicts his proprietary S&P 500 return when market returns are across-the-board favorable against the benchmark's actual total return.A market that goes nowhere
Structurally, Hussman has US economic growth pegged at just 1.4%. This metric reflects demographic labor force growth and trend productivity growth, barring forces of cyclical changes in unemployment.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
The charts show Amazon's stock is bottoming, primed for a 20% gain, Jim Cramer says'The charts, as interpreted by Carolyn Boroden, suggest that Amazon has finally resumed its long-term rally' toward $2,115, the 'Mad Money' host says.
Leer más »
Ranked: The 20 Most Dangerous Places to LiveA survey ranks the world’s most dangerous places to live—and the U.S. is in the top 20.
Leer más »
Column: Kaiser's bitter contract talks could jeopardize its 20-year partnership with laborKaiser's labor management partnership was revolutionary when it was launched in 1997. But can it survive today's union negotiations?
Leer más »
The 20 most exclusive colleges and universities in the USSome of the most prestigious institutions of higher learning in the United States are also the country's most exclusive.
Leer más »
Firefighters' overnight efforts boost containment of Tenaja fire near Murrieta to 20%Firefighters' overnight efforts boost containment of Tenaja fire near Murrieta to 20%
Leer más »
The top 20 cities around the world that are ready to welcome Gen Z workersNestpick found the cities worldwide that are best equipped for the up-and-coming generation of recent college grads.
Leer más »