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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (24817)1/18/2005 2:20:41 AM
From: ild  Read Replies (1) of 110194
 
This Week: January 18, 2005
Market Action as Information
So far, the recent market decline tells us that an overvalued, overbought, overbullish market has corrected. This is not enough information content, because the market has failed to produce the sort of wide internal divergences that have historically been the hallmark of extreme market risk. We can't rule out further market weakness, and defending our stock holdings with put option coverage is essential, but we still don't have enough evidence to warrant a fully hedged position.
By John P. Hussman, Ph.D.
hussmanfunds.com
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