There a number of very smart market techicians and John Hussman (Ph.D) is one of them. I follow his columns very closely and this week’s article titled ” The Rubber Hits the Road” is a very good one. The article outlines that the US stock market is characterized by “unfavourable valuations, overbought conditions, overbullish sentiment, and upward yield pressures”. He goes to explain that in these conditions, stock markets tend to “make continued marginal highs for some period of time, followed by abrupt and often steep losses virtually out of nowhere.”
Best regards,
Mike
P.S. I recommend you read his article:
Tags: interest rates, S&P 500, Stocks, valuation
