Market cap/GDP is now 145% over its pre-bubble norm, according to John Hussman. Even 10-year nominal returns will be negative from here. Technicals agree.
It won’t just “revert to mean” and somehow stop at fair value. We’re looking at an 80-90% drop here. Over time, of course, but still the trading opportunity of a lifetime. Thanks – Janet, Ben, Alan.
I’m thinking 400s on the S&P 500.