Posted 12/30/2023, 10:37:00 AM
Market Crash Predictor Sees 65% S&P 500 Plunge
- John Hussman, who predicted the 2000 and 2008 crashes, believes the S&P 500 could fall 65% even if the Fed pivots to rate cuts in 2024
- Hussman says stock valuations are at extreme levels, nearing 1929 and 2000 peaks, while investor sentiment is weak
- With risky valuations and poor sentiment, Hussman expects negative S&P 500 returns over the next 12 years
- Hussman estimates the S&P 500 may need to fall to 1650 (65% drop) to restore typical returns going forward
- Though a controversial figure, Hussman has made some remarkably accurate crash predictions in the past