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Hussman Strategic Growth Message Board

  • hypeblaster hypeblaster Jan 21, 2014 12:46 PM Flag

    One (among many) of the problems with HSGFX is...


    Hussman does not meet with the companies he is invested in (at least, that is my impression). If he were meeting with CEO, CFOs, etc, he would grasp that these companies are ripe with cash flow and that GAAP earnings underestimates earnings power. Yes, profit margins are on the high end of their historic range, but that doesn't mean a whole lot given where interest rates are, the historically cheaper cost of labor (globally), and the advances in technology. In 2009, US corporations were hemorrhaging cash, today they are generating billions in excess cash flow. The whole world is awash in cash. Total household savings currently equals the entire market cap of the S&P 500 at $14 trillion.

    It is absolutely ridiculous to have zero market exposure here. Backward looking econometric models are garbage!

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