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Monday, October 14, 2013

Words of Wisdom For Investors

John Hussman puts it very well indeed:
Our over-arching perspective is that market conditions remain hostile, particularly from the standpoint of the complete market cycle. That perspective comes with the full recognition that the recent advance has occurred largely contrary to our more negative intermediate-term estimates of market return/risk. Our view remains that this is more likely to represent an extreme extension of already speculative and overvalued conditions, rather than a durable change in market dynamics. Frankly, that was also our perspective at the 2000 and 2007 market peaks, despite seemingly unique features of those instances.
In any event, trust that we have no intention of abandoning the lessons of history in the belief that they no longer apply. That in itself is one of the lessons of history — every market collapse ultimately comes as a surprise to investors, because something always convinces them that this time should have been different.