Stock market is overvalued, overbought and overbullish, according to Hussman

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“Again, this is not intended as a forecast, but rather to note a historical regularity that seems relevant in a market environment where we are already defensive on the basis of other considerations.”

I have also maintained that US valuation levels are a headwind to stock market performance and will become an even bigger negative once the monetary authorities start removing the “juice”. Although, overall market returns may not be exciting off these levels, old-fashioned cherry-picking of individual stocks could still yield good results.

Source: John P Hussman, Hussman Funds, March 8, 2010.

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