hussman | Melotte Financial Advisors

Drivers of Return Since 1982 and What That Means for the Market Over The Next 10 Years

I came across an interesting analysis in Dr. John Hussman’s recent commentary that I’d like to briefly share.

In the commentary he talks about the primary driver of market returns throughout the various cycles since 1982. It’s very important to understand this if you want to understand the potential return outcomes for the duration of the market cycle…emphasis mine Continue reading “Drivers of Return Since 1982 and What That Means for the Market Over The Next 10 Years”

Executive Summary

Over the last month, U.S. stock market valuations, using the most historically–reliable measures, have become the highest they’ve ever been. Ever.
Based on current valuations, the next bear market in stocks may result in losses exceeding 60% from the ultimate top.
The next decline will be painful for most investors as every bear market tends to be but particularly problematic for folks nearing retirement and those already retired. All their retirement plans may be in jeopardy if they do not take steps to adequately protect their wealth and preserve their financial independence first and foremost!
There is hope for disciplined investors who understand the difference between a marathon and a sprint! For those investors, the next bear market may provide many attractive, sustainable, and sound investment opportunities at much cheaper valuations.