Mountain, Cliff, Or Ocean

The main uncertainty surrounding MarketCap/GVA here is that it’s not responsive to the extreme level of profit margins that we presently observe. Read more here.

Stock markets can be valued, and because they can be valued, the long-term risks involved in holding stocks vary from time to time. When stocks are cheap these risks are small, but when they are expensive the risks become Summary - The current level of stock market valuations remains - easily - the most speculative extreme in U.S. financial history, beyond both the 1929 and 2000 extremes. -

The main uncertainty surrounding MarketCap/GVA here is that it’s not responsive to the extreme level of profit margins that we presently observe. - At currently indicated valuations, companies going public or expected to go public in 2026 could enter the market with aggregate valuations of roughly 12% of U.S. GDP - over twice the previous records of 1999 and 2021. Dr. John Hussman is the president and principal shareholder of Hussman Econometrics Advisors, the investment advisory firm that manages the Hussman Funds ( https://www.hussmanfunds.com).

He holds a Ph.D. in economics from Stanford University, and a Masters degree in education and social policy and a bachelors degree in economics from Northwestern University. Prior to managing the Hussman Funds, Dr. Hussman was a professor of economics and international finance at the University of Michigan. In the mid-1980's, Dr Hussman worked as an options mathematician for Peters & Company at the Chicago Board of Trade, and in 1988 began publishing the Hussman Econometrics newsletter.

Virtually all of Dr. Hussman's liquid assets are invested in the Hussman Funds. Note: Dr. Hussman is not an active contributor to Seeking Alpha; rather, SA editors excerpt regularly from Dr. Hussman's public commentary.