Why exactly are you invested in the stock market then?
I get the feeling that most people don't actually read the prospectus or understand the strategy.
Hussman believed stocks were overvalued the last few years. Guess what, he was right.
Now we're down like 30% or something. Stocks are no longer as overvalued so he begins to take additional market risk.
That doesn't mean we won't lose. It's just an issue of the probabilities.
You want him to stay fully hedged until when exactly?
Down 0.89% today on a down market day. This is why I am mad. This fund has been flat for several years now, missing all the great market action IMO. When the trend is up that is the time to risk 1% of assets, not in conditions like this. I would have rather seen him protect the recent measly gains we achieved lately instead of pissing them away. Again why in hades did he not risk 1% of assets when the market was going straight up. It sucks to be holding this fund for so long and not making a nice gain in a market like this.
Don't worry....I bet the reason for the decline is he is bringing the strikes closer to the money.
This will eventually lead to greater participation in the coming rally. We will surely be higher than this point in the months ahead even if we first go a bit more lower. We are extremely oversold and Hussman is gearing up for it.
With some of the extreme bloodletting in individual stocks today, I wonder if that may have just swamped out any option measures?
I wonder if he can utilize any straddle strategies where you win on big up or down moves but lose a little if it stays flat due to time decay?