Bubble

News

August 21, 2017

Imaginary Growth Assumptions and the Steep Adjustment Ahead

John P. Hussman, Ph.D.

Indeed, our estimates of likely 12-year S&P 500 nominal total returns have fallen to just 0.3% annually, with an expected interim loss on the order of -63%. 

 At present, given that every decile is more than double its own norm, there is not a single decile of S&P 500 stocks for which we expect losses of less than -54% over the completion of the current market cycle. 

For stocks in the richest deciles, our median loss expectation approaches -70%.

 *******

World Markets Update

DYI