Superinvestors and the Art of Worldly Wisdom

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

Jan 27, 2021

01:22:40

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Episode notes

Introduction

2min

How I Learned to Invest in the Stock Market

2min

How to Find a Location That Feeds Your Mission

4min

The Transition to Finance

4min

The Value Conscious Full Cycle Investment Discipline

2min

The Value Conscious Part of Investing

6min

The Risk Management of a Overvalued Market

5min

The Infinite Recursion Problem

3min

The Value of Forward P Ratios

2min

10.

The Price to Peak Earnings Ratio

6min

11.

The Relationship Between Valuation Ratios and Returns on the Market

3min

12.

The Extremes of the Market Right Now

3min

13.

How to Get Rid of Zero Interest Hot Potatoes

3min

14.

The Fed's Guarantee of Below Average Long Term Returns

3min

15.

How Sensitive Is the 5.5% to Small Changes in Valuations?

4min

16.

The Risk of a Dislocation in the Market

2min

17.

The Overextended Syndrome

2min

18.

The Role of Signal Extraction in the Overvalued Market

4min

19.

The Importance of Valuation in Long Term Returns

6min

20.

The Importance of Noise Reduction in Stock Market History

4min

21.

The Role of Signals in the Market

3min

22.

The Importance of Margin Debt

5min

23.

The Consequences of Speculation in Animal Spirits

3min

24.

The Importance of Containment in the United States

4min

At just seventeen years old, John Hussman's introduction to the world of finance was a job hand drawing charts for an investment adviser who liked his handwriting. From that point on, he was hooked on markets. After receiving his PhD in Economics from Stanford in 1992, he went on to found Hussman Strategic Advisers and has been managing equity portfolios ever since. In this episode, John discusses how he developed his "value-conscious, historically-informed, full-cycle" investment discipline over the past 40 years and how he is implementing it today to navigate one of the most "overvalued, overbought and overbullish" stock markets of all time. For notes and links related to this episode visit TheFelderReport.com.