2min chapter

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#39: John Hussman On Navigating One Of The Most Overextended Stock Markets Of All Time

Superinvestors and the Art of Worldly Wisdom

CHAPTER

The Value of Forward P Ratios

Cape is famous in finance circles for his valuation metric, the Cape ratio. He's developed some other valuation metrics that he says are uniquely valuable. Every stock is a claim on some stream of future cash flows which I as an investor can expect to be delivered into my hands if I hold it over long term.

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Speaker 1
I walked into the bathroom. I'm standing there brushing my teeth and I catch my reflection in the mirror. And my first thought is, God, you look like hell. I start then cataloging all of the things that are wrong with my appearance. I'm like, your gray hair is coming in. You've got stripes on your neck. And then as soon as you have a negative thought or a self-criticism, it's sort of like lint in a dryer. Once you start collecting it, it just keeps on collecting. So now I'm thinking not about how horrible I look or how tired I look. Now I start thinking about all the stuff I need to do. I start going, oh my gosh, I got up a little too late and I've got a Zoom call in eight minutes. I don't even have a bra on yet. The dog needs to be walked. And I could feel my energy going down. Like I just felt the weight of the world on my shoulders. It doesn't even matter what was going on in my life at that time because I think it's a universal feeling to feel overwhelmed by your life at times. Yes. And so here I am, a motivational speaker, unmotivated, uncaffeinated, no brawn, standing there in my underwear with my dog at my feet. I don't know what came over me. But as cheesy as it sounds, I just raised my hand and gave the tired, haggard woman in the mirror a high five. And it didn't change my life like right then and there. But something shifted. Like I felt a little lighter. I felt like I wasn't alone. I felt like, OK, you know, this moment in your life is hard, but you can do this now. And I went on with my day. So the second day I woke up and this is when things started to really kind of churn in my mind. The first thing that I noticed was this. So I wake up, Lewis, and I make my bed and I realized I was looking forward to that moment in the mirror where I was going to see myself. of my life, either criticizing the woman in the mirror or ignoring her. And this was the first time that I could remember that I was actually looking forward to seeing myself. And so that second morning, I high-fived myself again. And again, I feel something shift. I feel a little, just a little lightness in the mood and I go on with my day. So the third morning, I do it again. And now I'm starting to feel a little bit of momentum. And I'm really enjoying it. I have no idea what the hell is going on. I haven't even done this in front of my husband, Chris, yet. Because let's be honest, standing in front of him here. High-fiving yourself. Yeah, like, come on, how pathetic does it get? You're like, is your life that bad? So I snap a photo of myself. I've got my retainer in. I got bedhead. Like I'm not looking glamorous. I did not expect this to be the photo that would ignite a movement. I posted on my story on Instagram within an hour, at least a hundred people tagged me all over the world. People high-fiving the mirror with their kids, people on a submarine, high-fiving it in the military, people MMA, like just, and I thought, okay, wait a minute. Maybe I'm not the only one that needs a little boost in the morning. Maybe I'm not the only one who feels alone. Maybe I'm not the only one that is missing a sense of encouragement and control and confidence in an overwhelming moment in my life. Maybe there's something here. And then the messages started to come in whoa mel like i have been using this for for five days this woman wrote to us she's had body dysmorphia for 20 years has not been able to look at herself in the mirror five days of doing this high five and she said i can look at myself and i even see beyond the body. I see the person and I can grin. We had a woman who wrote to us who said that she was in a domestic violence shelter. She had escaped a very abusive relationship. She had seen me talking at our friend Jamie Kirm Lima's event. She started doing the high five thing. She DMs us and she says that I have childhood trauma. I've just been in a physically abusive relationship.

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