John Hussman: Buying Near the Bottom [View article]
You might be right, that it is comparing apples/oranges to call current events similar to the Great Depression. But, what is different by way of quality could be similar in quantity (read: magnitude). It is documented that there are nearly $1 Quadrillion (with a Q) of unregulated derivatives outstanding. If even 1/10 of 1% of these are bad we are looking at $1 Trillion in losses, and we might not even be that lucky. It's safe to say this could be quite bad for equities. While I agree that it's buying 'near' bottoms that make a great investor, I am genuinely concerned we are not near it.
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You might be right, that it is comparing apples/oranges to call current events similar to the Great Depression. But, what is different by way of quality could be similar in quantity (read: magnitude). It is documented that there are nearly $1 Quadrillion (with a Q) of unregulated derivatives outstanding. If even 1/10 of 1% of these are bad we are looking at $1 Trillion in losses, and we might not even be that lucky. It's safe to say this could be quite bad for equities. While I agree that it's buying 'near' bottoms that make a great investor, I am genuinely concerned we are not near it.
Dec 09 12:44 pm
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