“It’s worth understanding that the largest drag on this portfolio mix is the equity component, which is more negative than at any prior point in history. I’m not terribly surprised that Grantham is presently advising a zero allocation to U.S. stocks here. As I noted in last month’s comment, our own measures of market internals indicate that speculators do have the bit in their teeth, but with such extremely overextended technicals and lopsided bullish sentiment that our outlook is essentially neutral, and I continue to view safety nets and tail-risk hedges as essential.”
USAGOLD note: The latest from John Hussman … For the average investor, the best “safety net” and “tail risk hedge,” in our view, is still physical gold and/or silver in the form of coins and bullion. Hussman sees the S&P 500 Index losing two-thirds of its value in the current market cycle.
Repost from 11-18-2020