- Hindenburg Market Set to Burst into Flames
John Hussman’s warnings are beginning to be heeded by more people as market internals continue to deteriorate, more old time respected investors voice their concerns about this overvalued, over-hyped, overdue for a collapse, debt dependent market. If you haven’t exited this market yet, you are playing with fire. The signs couldn’t be any clearer. The tiniest spark will set off a conflagration. Oh the humanity as all the arrogant Wall Street pricks try to exit at once as their HFT computers all give the sell signal at the same time.
The market has been falling. It’s now negative for the year. It’s funny. From December 2008 through October 2014 the Fed increased their balance sheet by 115% and the S&P 500 increased by 125%. Since QE3 ended in late October, the economy has gone stagnant, along with the stock market. Without Fed heroine injections the American junkie is dying. Hussman saw the 2000 and the 2008 collapses coming based upon fundamental analysis and using common sense. See below:
At present, every nerve of investors should be twitching like a downed power line.
To fully encourage your sense of deja-vu, the following is clipped from my October 3, 2000commentary in Hussman Investment Research & Insight, a few weeks after our measures of market action turned negative.
I strongly encourage investors to learn it once, learn it permanently, and teach it to your children.
A market collapse is baked in the cake. The excessive risk taking, encouraged and promoted by the Federal Reserve, has elevated market to an extreme level of overvaluation. That guarantees an extreme collapse. The Fed already has interest rates at zero. Their easing caused this coming crash. It will not stop it. Oh the humanity!!!!