Monday, June 19, 2006

Hussman's Weekly Market Commentary - S&P 500 Fair Value Below 800?

As I watched a 10% decline in my wealth over the last few weeks, I was reminded that Hussman has been 'spot-on' in his analysis of the market. I'm seriously considering putting some of my Domestic Equity holdings into Hussman's fund.

Read the whole thing!

Hussman Funds - Weekly Market Comment: June 19, 2006 - S&P 500 Fair Value Below 800?: "Sometimes, there is simply no point to retaining an exposure to market fluctuations at all. When valuations are rich, interest rates are rising, and internal market action displays wide divergences and 'heavy' price/volume action (indicative of waning sponsorship and a deteriorating willingness of investors to accept market risk), there has been no benefit historically in maintaining even a speculative exposure to market risk. During such periods, hedging against the impact of market risk actually reduces volatility while typically increasing long-term returns (though not necessarily short-term returns since one will tend to miss periodic short-term rallies)."

1 Comments:

At 1:23 PM, Anonymous Marc Mayor said...

Early Riser,

Down 10% so fast, why take so many risks?

IMO, half of your portfolio should be short stocks, so you're neutral. It doesn't hurt the performance, but helps on the risk side.

Good luck!

Now let's make money !

 

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