finance.yahoo.com/news/p-500-could-plunge-much-234850012.html
-
Legendary investor John Hussman says the latest stock rally is rooted in the extreme fear of missing out.
-
FOMO factors have surged in markets, and stock prices could fall 50%-70% this cycle.
-
His firm's most reliable indicator now exceeds 1929 extremes.
All-time highs in the stock market give the impression of a runaway rally, but it's a bull run that will eventually come crashing down, John Hussman said in a new note.
The legendary bear, famed for predicting the 2000 and 2008 crashes, reiterated that equities could drop as much as 70% this cycle. It's a long-held take that may seem out of place amid the market's momentum, as the S&P 500 continues to breach record highs in 2024.
But to the Hussman Investment Trust president, the extreme runup is driven by investor impatience and a fear of missing out — key ingredients for a coming correction.
