Hussman's weekly commentary

[greg]

Hussman is a bit worried about stock market conditions:

http://www.hussmanfunds.com/wmc/wmc051024.htm

--Greg

Someday one of these guys are going to be right. Then they are going to write a book, go on the talk show circuit and tell us what fools we were not to listen to them.

When they're wrong however, they go away like a bad haircut and Ravi Batri!

I think, I'm going to hurry up and do nothing like unclemick, unless of course a hurricane is in my path. Then I'm gonna hurry up and get out of town!

[wildcat]

Old new story

[wabmester]

I like Hussman because he doesn't try to time the market entry and exit -- he just hedges his position. He also understands that short-term moves are all about human expectations, which is a very important economic insight. If you were to go with an actively managed fund, you could do much worse than this guy.

[greg]

wab: All the trickle down money from our Vichey Shower condo deal (if it ever materializes) is going directly into Hussman Funds--do not pass "Go,' do not collect $200. I consider the 1.17% expense fees for the Growth Fund as a small payment for the 'sound' weekly advice.

--Greg

[Craig]

I'm not familiar with Hussman. His Performance Chart for the Strategic Growth Fund is impressive ... I note it is net of fees, but not net of hedges. No load, and I agree ... expense ratio not as high as I'd expect.

Who else invests here, what's your experience, why do you like this fund, etc.? Or, alternatively, who wouldn't touch this fund with the proverbial 10-footer?

Interesting commentary, thanks.

New investors may read good advice: Choose an appropriate target allocation and stick with it, ignoring all the Wall Street chatter, hot tips, and doomsday warnings. However, they usually succumb to the first big dip that's accompanied by dire warnings.

And it's not surprising, because these warnings sound so convincing.

[haha]

Interesting aspect of the way Hussman manages this fund is that he uses technical analysis, in addition to valuation analysis. He calls it “market internals".

Yesterday he gave a quote from economist Gary Becker: “People respond to fear, not risk."

Ha

[greg]

Quote:

Originally Posted by HaHa Interesting aspect of the way Hussman manages this fund is that he uses technical analysis, in addition to valuation analysis. He calls it “market internals". Yesterday he gave a quote from economist Gary Becker: “People respond to fear, not risk." Ha

Ha: Hussman's 'fear' commentary was what I thought was most important about his article. Every old hand in the market says the same thing, and the cycle always remains the same about the 'buy and holders": As the market goes up risk is ignored (e.g. people buy junk bonds for the wonderful yield) and as it starts down and people realize that substantial portions of their security blanket are disappearing, they panic--and sell. Happens every single time to a lesser or greater extent! When the herd panics and runs, almost everyone suffers. Even Bogle (from Vanguard), recommends a diverse mixture of assets as some sort of protection while in the middle of the herd. My point: Know all the potential risks in your own portfolio and determine ahead of time what you can tolerate--know both your risks and your fears--before something happens.

I didn't start this thread to advertize Hussman, although if everyone bought a little it would reduce my expenses when I do buy . I like Hussman because thinks far differently than me. (He actually knows and uses facts and formulas about the market.) That's diversity--to my mind.

--Greg