Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Bearish Manager Missed Big Stock Gains: Can You Say John Hussman
Good post. John Hussman is worth keeping track of, even if he has been wrongly bearish for a very long time. He has a PhD in Economics from Stanford University, and used to be a professor of economics at the University of Michigan. He has a website and writes prolifically about stock valuation. As you can imagine, he thinks stocks are way overvalued.
Yes, and so do I. These are extraordinary times though. Very favorable photo of John. I can tell you that the hair is a bit grayer and the face more careworn these days. Does tremendous work with his autism foundation.
Why are his funds perform so poorly? I would invest in only in bonds and cans if I am so bearish. By the wat, Micheal Hassenstab of Templeton Global Bond and Global Total Return funds, also holds a PhD in economic. Certainly you don't hear much complain from his investors.
Something from Howard Marks in a Bloomberg article on Junk bonds reminded me a little of this thread:
"“You can’t go on strike and refuse to buy the securities you’re paid to invest in, because the market may not turn for months or years,” Marks said. “Never forget the old adage, being too far ahead of your time is indistinguishable from being wrong. So you have to buy but with caution.”
Good stuff Scott. Fortunately for JH, the only thing greater than his conviction is his ego. And as for having a PhD in economics, LTCM was chock full of PhDs and Nobel Prize winners.
All good here. But I wonder why we still continue to pay any attention to him? For a genuine real bear fund with conviction, I'd rather look at BEARX. At least you know where that one stands!
Comments
Very favorable photo of John. I can tell you that the hair is a bit grayer and the face more careworn these days.
Does tremendous work with his autism foundation.
"“You can’t go on strike and refuse to buy the securities you’re paid to invest in, because the market may not turn for months or years,” Marks said. “Never forget the old adage, being too far ahead of your time is indistinguishable from being wrong. So you have to buy but with caution.”
http://www.bloomberg.com/news/2014-03-03/oaktree-s-marks-urges-caution-as-money-flowing-into-loans-surges.html