Sunday, May 16, 2021

Stock Market Insanity Prevails...Valuations Now Gone Vertical!

 Bubble

News


Counting the Chickens Twice

John P. Hussman, Ph.D.
President, Hussman Investment Trust
May 2021


DYI:  Incase you are unable to see Hussman’s 12 year estimated average annual return for a typical 60% stocks – 30% bonds – 10% T-bills the return is now negative 2.29%!

Estimated 12 year average annual return for 100% in stocks – [chart shown by going to linked article] – is now negative 6.18%!

Bottom line this is terrible time to be investing into stocks on a generalized basis – [growth fund, S&P 500 index fund].  DYI’s model portfolio is shown below.

Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 5/1/21

Active Allocation Bands (excluding cash) 0% to 50%
50% - Cash -Short Term Bond Index - VBIRX
50% -Gold- Global Capital Cycles Fund - VGPMX **
 0% -Lt. Bonds- Long Term Bond Index - VBLTX
 0% -Stocks- Total Stock Market Index - VTSAX
[See Disclaimer]
** Vanguard's Global Capital Cycles Fund maintains 25%+ in precious metal equities the remainder are domestic or international companies they believe will perform well during times of world wide stress or economic declines.  

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PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

DYI

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