Jesse Felder’s most recent article is a punch in the face back to reality.
Of the 3 punches he throws, I read and respect both the views of GMO and John Hussman. Hussman points out that valuation is beyond ridiculous right now. GMO predicts future 7 year returns are -3.1%. High valuations = Shitty future returns. You don’t need a CFA to work that one out.
Yet the INSANE valuations are being ignored by most investors.
While the US stock market is only 5% down from ATH (2085.18 from intra day high of 2193.81), people are already calling this a massive buying opportunity because of the weak hands that are cashing out early.
Buying into US stocks at these valuations require some serious hallucinogens or just a very general and strong lack of ability to give a f*** about what you’re actually buying.
Yes, I did …