Five year return of 1% annually just doesn't cut it. Permabears probably love his rheoric though feel free to ship him some dollars to invest if you are a big fan.
When the S&P 500's return has been negative (and the average fund manager's even worse) over the same period, that certainly does "cut it." And again, you can't just cherry pick any period you want critique someone. Of course, there's a reason he's a fund manager and the peanut gallery here can't manage demo accounts on ETrade outside a lucky call or two. The real irony here is the source. Someone who simply asserts "smart money is long" and "stocks are undervalued" without a shred of evidence against Hussman, a Ph.D. with a 10-year risk-adjusted outperfomance record who has proven otherwise with numerous data and studies. Just the first two paragraphs of his weekly updates are probably miles above your ken.
There is an essential (fundamental, if you will) problem with fundamental alanalysis, specifically timing. Is the worldwide massive government debt going to cause major problems? Oh yeah. There is a giant storm building on the horizon and everyone can see the clouds. We know it is coming. When is it going to get here? Hard to say. How strong are the winds going to be? Cannot determine. Which buildings are going to survive and which might be swept away? Nobody can say with certainty. Part of the problem with timing is we have various governments making heroic efforts to keep the storm at bay. Every effort weakens the "hero" and strengthens the antagonist, so the outcome is inevitable. You cannot have your cake and eat it too. Rational thought and patience cannot be undervalued. "If you can keep your head when all about you. . ." I'd throw some more cliches in here, but I gots me stuff to do.
I read it. Generally I go with my first thoughts, which are: I disagree with most of what he wrote. Now I have to re-read and figure out why my first impression could be wrong. This is a personal problem.:eek: