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I thought this commentary might be about a strategy to exit his fund. But no, just more of the same bubble talk that doesn't seem to correlate with investing returns.
It's not as if Hussman hasn't made his case again and again, with an exceptional level of detail. I don't disagree with a fair amount of it.
I guess the thing is, at least outpace inflation by a little, which I think is considerably higher than the government numbers. That's still not asking a ton. CPI+5%? I dunno.
However, when managing a fund it becomes at what point do you have to say that your views just aren't working? 6 months? A year? All-in-all, I'm surprised that he hasn't had AUM flight.
As I've said before, it's not that Hussman is going to gain back everything and then some if he's suddenly right, best case the fund slowly gains back what it's down over the last few.
One thought: there is a point where it would be "prudent" to move to a fund like this and lower risk. To use a general statement, is there a point where everyone gets so upset with their conservative funds that they dump them for high risk at the wrong time? I think so, to some degree.
However, Hussman's complete lack of flexibility would mean that my choice wouldn't be this one.
Comments
I guess the thing is, at least outpace inflation by a little, which I think is considerably higher than the government numbers. That's still not asking a ton. CPI+5%? I dunno.
However, when managing a fund it becomes at what point do you have to say that your views just aren't working? 6 months? A year? All-in-all, I'm surprised that he hasn't had AUM flight.
As I've said before, it's not that Hussman is going to gain back everything and then some if he's suddenly right, best case the fund slowly gains back what it's down over the last few.
One thought: there is a point where it would be "prudent" to move to a fund like this and lower risk. To use a general statement, is there a point where everyone gets so upset with their conservative funds that they dump them for high risk at the wrong time? I think so, to some degree.
However, Hussman's complete lack of flexibility would mean that my choice wouldn't be this one.