Stock valuations mirror the extremes of 1929 and the market is at risk of a steep crash, investor John Hussman has said per BI.
“Investors are presently enjoying the double-top of the most extreme speculative bubble in US financial history,” Hussman wrote.
— unusual_whales (@unusual_whales) March 28, 2024
- Stocks look like they’re in the most extreme bubble in history, investor John Hussman said.
- The legendary investor thinks stocks look as overvalued as they were in 1929 and in 2021.
- That means the market could be at risk for a steep correction, he said in a recent note.
Stock valuations look as extreme as they were in 1929 and 2021 before markets tanked, and investors are at risk of experiencing a steep crash, according to John Hussman.
The legendary investor who called the 2000 and 2008 market crashes cast another warning for the stocks this week as investors sent the market to all-time highs on the back of the Fed’s latest policy update that reiterated the outlook for rate cuts in 2024.
That outlook supported by a number of valuation measures, Hussman said in a note on Thursday. His investment firm’s most reliable measure, which is the ratio of nonfinancial market capitalization to gross value-added, is sitting at its highest level since the 1929 stock-market peak, right before the market crashed and sent the Dow plummeting 89% peak-to-trough.
Rising Commercial Real Estate Delinquency Rates
Delinquency rates for commercial real estate have risen during each of the past three recessionary periods, and they are currently on the rise again.
This chart shows the year-over-year change in delinquency rates.
In Q3 2001,… pic.twitter.com/Wm6ZWEH8p9
— Reef Insights (@ReefInsights) March 12, 2024
The proprietary Domino’s Pizza indicator is flashing red alert. pic.twitter.com/dfYle3lmAz
— Mac10 (@SuburbanDrone) March 29, 2024
Dow Transports non-confirmation 2.0.
What will be the excuse this time?
Didn’t know that Bitcoin costs almost twice as much as a Tesla? pic.twitter.com/LTy6UOrARu
— Mac10 (@SuburbanDrone) March 28, 2024
The US consumer serious delinquency rates (90+ days) in auto loans and credit card debt have risen to the highest level since 2011, with credit card loan rates rising at the fastest pace since the Great Financial Crisis.t.co/ivOy8TaVSj
— Global Markets Investor (@GlobalMktObserv) March 29, 2024
“Analyst optimism has turned down (defined as % of eps upgrades, 6m mav). What surprised me given all the hype about AI boosting profits is optimism topped out at only 50%. As an ex-girlfriend once said to me, ‘is that it?’.”@albertedwards99 pic.twitter.com/9WkR4n7ffn
— Daily Chartbook (@dailychartbook) March 29, 2024
