One tier and the rubble down below

Hussman Funds/John Hussman/January 2020

“Yet for all the bullish exuberance, speculative enthusiasm, and fear-of-missing-out (FOMO) we’ve observed among investors in recent weeks, and indeed, in the past two years, the fact is that a pullback of just 11% in the S&P 500 would place the total return of the S&P 500 Index behind the return on Treasury bills since the January 26, 2018 market high. Given current overextended extremes, the entire gain of the S&P 500 since early-2018 could be given up in a handful of trading sessions.”

USAGOLD note:  Hussman posts a somewhat shocking rundown of blue chips stock performances in 1973-1974. (One example – General Motors: -71.2%.) And starts this typically in-depth analysis with a short notation:  “We forget.”

Repost from 1-1-2020