Quit while you’re ahead

Hussman Funds/John Hussman/March 2022

“The expected return from a roulette spin is negative: -5.26%. An operation that has a negative expected return is not an investment. It’s not even an intelligent speculation. It’s simply a gamble. Of course, you might get lucky, but on average you won’t. If you insist on playing anyway, the last useful resort is to follow the advice of Baltasar Gracián y Morales: ‘Quit while you’re ahead. All the best gamblers do.’ Why are you taking market risk?”

USAGOLD note: Down-to-earth advice from a prominent fund manager …… He warns that investing in stocks at current valuations is not investing at all, but “baseless gambling.”