Legendary investor John Hussman says the latest stock rally is rooted in the extreme fear of missing out.
FOMO factors have surged in markets, and stock prices could fall 50%-70% this cycle.
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The legendary bear, famed for predicting the 2000 and 2008 crashes, reiterated that equities could drop as much as 70% this cycle.
"Even the more conventional (but less reliable) S&P 500 price/forward operating earnings multiple is at levels that have no rivals except surrounding the 2000 and 2022 peaks," Hussman said.
Persons:
John Hussman, —, Hussman, Dow
Organizations:
Service, Hussman Investment Trust