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. http://www.hussmanfunds.com/wmc/wmc050118.htm
As always, Hussman's article is well-written. He's articulate and intelligent. Thanks for sharing. But, I would suggest what he's saying is little different than what is being shared on this board by individuals of equal intelligence.
Market fundamentals, market action and direction. Sustainability. The impact of the economy. Market psychology.
Hussman is another data point for consideration and possible discussion. But, not much else. It's all been said before. Just minor repackaging.