A few important things to note beyond the colorful editorial commentary I added to John Hussman’s quality work here.
First, the chart is logarithmic. The y-axis value doubles with each hashmark. Meaning: the current excess is a lot more extreme than it looks at first glance.
Second, the vertical lines indicate ‘dispersions’ which are market conditions Hussman finds are highly-correlated with “steep and rather abrupt market plunges, often representing the first leg of a more extended collapse”.
Notice how rarely they have occured over the past 25 years, and yet they’ve suddenly increased in frequency of late (the most recent took place on Nov 20th).
Adam Taggart and Chris Martenson run PeakProsperity.com and do a great job of it. A damn fine source of information about resilience, preparedness, energy resources, homesteading, and much, much more.
If you have any significant amount of money tied up in equities, it may be time to reconsider the wisdom of that allocation.
Disclaimer: This should not be construed as financial advice. I am not a registered financial advisor; I don’t even play one on TV. Do your own due diligence. Batteries not included. Objects may be larger than the appear in mirror. Some assembly required. Do not taunt Happy Fun Ball.