U.S. Stocks

Remain Insanely

Overvalued

When will the Bear Roar? 

The market is a pendulum that forever swings between unsustainable optimism, which makes stocks too expensive, and unjustified pessimism, which makes them too cheap.

The intelligent investor is a realist who sells to optimists and buys from pessimists.

– Benjamin Graham

Professor Hussman monthly market comment

MarketCap/GVA at higher levels than at the 1929 and 2000 bubble peaks may help to understand why Berkshire Hathaway holds the largest pile of cash in its history (primarily in Treasury bills comfortably earning about 4.5%). Market conditions and valuations will change. In the meantime, both patience and discipline will matter.

Smart Money - Buys Aggressively!

Capitulation

Despondency

Max-Pessimism 

Depression 

Hope - Silver F

Relief *Market returns to Mean  - Short Term Notes & Bills or MMF

Smart Money - Buys the Dips!

Optimism - Gold

Media Attention

Enthusiasm

Smart Money - Sells the Rallies!

Thrill

Greed

Delusional

Max-Optimism  Residential Real Estate   - Stocks 

Denial of Problem  

Anxiety 

Fear

Desperation - Long Term Bonds

Current Economic Conditions

Prosperity - Moderate

Recession - Shallow

Deflation - None

Inflation - Moderate

Economic Choices

None

Shallow

Moderate

Prominent

Extreme