Hussman has posted his Weekly Market Comment. He comments on how his Fund had a slight loss, which
resulted from our defense against an overvalued, overbought, overbullish, rising-yields condition and a runup in risk assets that was still unresolved as the year came to a close. While it was small from a long-term perspective, the decline felt excruciating in the final weeks of the year as stocks characterized by low-quality, low yield and high risk persistently outperformed those ranked higher in quality, yield and stability.
I concur wholeheartedly. His tone is very apologetic, and you can tell that he is really exasperated with the rally and the manic sentiment.
His bearishness is nothing to be apologizing for. In his fund, he has consistently created or preserved value for investors. If anything, he was not bearish enough during 2007-2008, basically treading water during a period when Credit Bubble Stocks was finding companies that were zeroes, like Bank United or Countrywide. [But, he vastly outperformed mainstream investors.]
Keep in mind that some of the managers who are most bullish now never sold their junk holdings, like New Century Financial or Downey Financial, even at the bitter end.
Recently, Hussman has climbed aboard my theory that the Treasury will not be able to "inflate its way out" of its very short maturity debt.