Beware the Bear

I have overheard a lot of Western Chicagoland folks excitedly talking lately about how well the stock market has done since the ‘fiscal cliff’ was resolved.  Not since February 2000 (not a typo) has more money raced into equity funds until this past January 2013.  I remember a quote from Sir John Templeton, “Sell when everyone else is buying”.  He also wrote, “Buy when everyone else is selling,” though that isn’t evident today.  Both are emotionally difficult to do in real life.

A guy a like to pay some attention to is John P. Hussman, Ph.D.  John is a stock market analyst and manager of The Hussman Funds in Ellicott City, Maryland. John is knownfor his criticism of the US Treasury and the Federal Reserve and for predicting the 2008-2009 US Recession.  He is also a former professor of economics and international finance at the University of Michigan.

I copy (with permission) highlights of some recent comments John makes.  You can read the entire Hussman article by clicking the link at the bottom.

Cheers, and feel free to call- Ed Downey.

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