Hussman's Weekly Market Commentary
Hussman Funds - Weekly Market Comment: February 6, 2006 - Flying Wallendas: "In short, if we accept market risk by closing down our hedges, it's not enough for the market to advance from here. Given the strong likelihood for disappointing returns over a more extended period of time, we've got to have reasonable confidence that we'll be able to close out our market risk out at even higher levels before conditions deteriorate. In my view, that's a very tall order. Last week, with the ISM figures below expectations but the prices-paid figures above, the employment figures below expectations but the wage inflation figures above, the productivity figures below expectations but the Fed Funds trajectory (as indicated by futures prices) above, and so on, I took the Strategic Growth Fund back to a 95% hedged stance. We've still got a slight amount of uncovered risk, and could very well trade between a full hedge and a 70-80% hedge depending on the quality and character of market action, but overall, the Fund is defensive at present."
Read the whole thing.