Morton Fox
Hussman Funds - Weekly Market Comment: Dancing at the Edge of a Cliff - May 14, 2012 - http://hussmanfunds.com/wmc...
Hussman Funds - Weekly Market Comment: Dancing at the Edge of a Cliff - May 14, 2012
"Present market risks involve a confluence of factors. First, valuations remain unusually rich. Though prospective returns are better than at the 2000 and 2007 peaks, valuations remain more elevated than at any point prior to the late-1990's bubble, save for the period before the 1929 plunge. Notably, valuations only seem "reasonable" on the basis of "forward operating earnings" if one ignores the fact that profit margins are 50-70% above historical norms, and are dependent on unsustainably large fiscal deficits and depressed household saving in order for that to continue" - Morton Fox from Bookmarklet