Stock Market Superbubble
We are once again witnessing a pretty familiar scene. The bears are “out in force” as the US market hits correction mode.
While we are yet to be in bear market territory, there is already an expert out there who warns of a 70% pullback amid an “extreme” bubble. John Hussman, the man who correctly predicted the dot-com bubble crash in 2000 and the US housing-led crash in 2007, believes that the condition is now ripe for an even more epic burst.
Another well-known fund manager, Jeremy Grantham of the GMO fund, believes that stocks are in super bubble territory and the sell-off has just started, with the ultimate “burst” likely to reach a market drawdown of approx. 50%.
At the start of Jan 2022, he published the article: Waiting for the last dance in which he highlighted that the equity market...