I just love this guy! His Wile E. Coyote analogy is as insightful as it is hilarious! He says we stand on the edge of an anvil-fueled cliff!
"In July 2011, just before the market lost nearly
20% (but also the last time it corrected materially), I observed “Like
Wile E. Coyote holding an anvil just past the edge of a cliff, here we
are, looking down below as if there is much question about what happens
next.” In my view, the stock market is hovering in what has a good
chance of being seen in hindsight as the complacent lull before a
period of steep losses. Meanwhile, we would require a certain amount of
deterioration in stock prices, credit spreads, and employment growth
to amplify our economic concerns, but even here we can say that there is
little evidence of economic acceleration. Broad economic activity
continues to hover at levels that have historically delineated the
border of expansions and recessions" John Hussman, PhD (January 13, 2014)
