Reported 11 months ago
John Hussman, a well-known permabear, warns of a significant market correction ahead as a high concentration of warning signals indicate a potential crash. With negative market leadership at a five-year high and various red flags, including the ratio of nonfinancial market capitalization to corporate gross value-added surpassing 1929 levels, he predicts a 50%-to-70% correction for the S&P 500. Despite his bearish outlook, Wall Street remains optimistic, expecting the index to stay above 5,000 this year. Hussman has a history of accurately predicting market declines, such as the tech crash in 2000 and the 2007 financial crisis, although his recent returns have underperformed.
Source: YAHOO