I'm prepared to be a little frustrated today. I think Hussman has been pulling in the call options a little closer in case we get a continued rally from here, but his pessimism this week makes me think we won't participate greatly.
Maybe the bear rally will fail anyway - fast, furious, and prone to failure as Hussman always says. Citi being profitable and removing the uptick rule is not exactly the news I thought was necessary to stop the bleeding. XLF up 12% (gulp!). We're screwed there unless Hussman has been been picking up mid-tier banks.
His WMC this week had me wondering too. And yesterday I saw some big names getting more bearish and I think one was ML lowering their low and pushing it out to Oct (i.e. ANALyst contrarian signals...finally!). Will be interesting to see if H shifts gears based on market action improvement.
Well, 1.92% ain't bad considering he dowsn't own any energy or financials to speak of, and is shorting the indices that do.
Going back to the 2000-2002 debacle, he'd underperform on days the nasdaq rallied, because he wasn't in that stuff then. Yet look how he made it thru that period. He says its a long-term strategy without any intent or expectation of mimicking the indices. Especially for those (e.g., older investors like me) who would rather miss a one dollar loss than make a 2 dollar gain, this is a very attractive fund.
If Hussman was following his own set of rules the fund would be net long based on value. But he is not following the rules in this bear. He went long way to soon and cost us dearly. I am betting on him missing the bottom so I got out. Life is too short no pun intended.