Re: Bearish Information Re: John Hussman
http://hussmanfunds.com/wmc/wmc080421.htm
My personal bias is that the equity markets are set up for a rally, already being in that mode since March 10th. The biggest weakness in the rally so far has been absence of volume, upon which Hussman also comments.
Hussman's weekly note tonight should offer some encouragement to any bears were their feeling to be hurt now and possibly moreso in the coming days.
Bold emphasis JN
His entire comment is well worth reading I do believe, plus there is a bit of entertainment in it suggested for you business TV watchers.
http://hussmanfunds.com/wmc/wmc080421.htm
My personal bias is that the equity markets are set up for a rally, already being in that mode since March 10th. The biggest weakness in the rally so far has been absence of volume, upon which Hussman also comments.
Hussman's weekly note tonight should offer some encouragement to any bears were their feeling to be hurt now and possibly moreso in the coming days.
Originally posted by John Hussman}
Snips.
The pullback in the Strategic Growth Fund last week (-1.87%) was primarily attributable to those divergent industry returns, away from defensive sectors (staples, non-cyclicals, healthcare, etc) and toward risk sectors (financials, materials, cyclicals, internet) not heavily represented in the Fund.
We are intentionally avoiding such risk sectors on the expectation of further financial sector weakness, and because materials and cyclical stocks currently rely on sustained commodity price strength and “decoupling” between the U.S. and foreign countries. I continue to view commodities as cyclical, and decoupling as implausible – indeed, my impression is that the commodity surge will likely be turned on its head within a few months, about the point where 10-year Treasury yields move above the year-over-year CPI inflation rate. Having spent the mid-1980's working at the Chicago Board of Trade, I was always impressed how much more “V-shaped” commodity price charts were than equities or bonds. Spike tops, spike bottoms, and steep reversals are common. [B
Snips.
The pullback in the Strategic Growth Fund last week (-1.87%) was primarily attributable to those divergent industry returns, away from defensive sectors (staples, non-cyclicals, healthcare, etc) and toward risk sectors (financials, materials, cyclicals, internet) not heavily represented in the Fund.
We are intentionally avoiding such risk sectors on the expectation of further financial sector weakness, and because materials and cyclical stocks currently rely on sustained commodity price strength and “decoupling” between the U.S. and foreign countries. I continue to view commodities as cyclical, and decoupling as implausible – indeed, my impression is that the commodity surge will likely be turned on its head within a few months, about the point where 10-year Treasury yields move above the year-over-year CPI inflation rate. Having spent the mid-1980's working at the Chicago Board of Trade, I was always impressed how much more “V-shaped” commodity price charts were than equities or bonds. Spike tops, spike bottoms, and steep reversals are common. [B
His entire comment is well worth reading I do believe, plus there is a bit of entertainment in it suggested for you business TV watchers.
Comment