Quote of the Day

Friday, February 16, 2007 | 10:30 AM

Today's quote of the day comes to us via John Hussman:

"If the parents or the children of Wall Street analysts were to ask for wise investment advice, would the first thought of these analysts really be to encourage stock purchases at a multi-year market high, in a long-uncorrected and strenuously overbought advance, at a multiple of over 18 times earnings on unusually wide profit margins, with wages and unit labor costs rising faster than inflation, while interest rates are rising, bullish sentiment is unusually high, and corporate insiders are selling heavily? Would the potential for further gains in that environment exceed next inevitable correction by an amount that would make the net gains worth the risk? Would they encourage using trend-following systems in an overbought market, even though a decline to simple moving averages already implies substantial losses?"

'nuff said.


UPDATE Februray 16, 2007 12:36

As per a request made in comments, here is John Hussman's track record for his Hussman Strategic Growth fund (found via Welling@Weedon)

Hussman_returns

Not too shabby . . .

>

Source:
It's All Fun and Games Until Someone Gets Hurt
John P. Hussman, Ph.D.
February 5, 2007
http://www.hussmanfunds.com/wmc/wmc070205.htm

Friday, February 16, 2007 | 10:30 AM | Permalink | Comments (23) | TrackBack (0)
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Would they?
yes.

Posted by: brion | Feb 16, 2007 10:38:52 AM

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