gembree

John Hussman: We May Be Seeing a Phase Transition

The numbers already include the impact of fees, as can be verified by checking the individual annual reports (Hussman is pretty on-the-ball regarding governance, although I agree that unfortunately you cannot just assume fees are subtracted these days).

I'm not really sure why you're so concerned with the details of his prospectus mandate. I think you are overly concerned with the box, which is a helpful visual aid but only generally true. It's not a simple binary sum, but an analysis. He has stated continually that he feels the current overvaluation outweighs the mildly to decently favorable market action over the last few years.

I guess my question is, why do you feel so strongly that 4 or 5 years is a better frame of reference than 6 years? Even if you include just that one extra year, 2002, and give him no credit for 2000 or 2001 performance, HSGFX destroys the S&P. Do you really think that having one year out of six be a bear year is so unusual and abnormal?