'..For now, market conditions remain consistent with the speculative “blowoff” of an extreme late-stage bubble peak.'<blockquote>'Presently, wicked valuations are coupled with still-unfavorable market internals on our measures, and have now been joined by the most extreme “overvalued, overbought, overbullish” syndrome of conditions we identify. The same combination prevailed at the 1929, 1972, 1987, 2000, and 2007 market peaks. Still, we’re quite aware that investor preferences might shift more durably, and we can accommodate that potential by monitoring those preferences through the market action that they generate. For now, market conditions remain consistent with the speculative “blowoff” of an extreme late-stage bubble peak.
..
If one studies the productivity figures, there have actually been two peaks in U.S. productivity growth during the post-war period. One was in the decade leading up to the late-1960’s, which was driven by a legitimate expansion in the productivity of U.S. workers, as measured the capacity of labor to produce output. This was something of a “golden age” for the U.S. in terms of improved living standards. There was a second, lesser peak in the decade leading up to 2003. But the reason for that surge in “productivity” was much different.'
- John P. Hussman, Ph.D.,
Economic Fancies and Basic Arithmetic, December 12, 2016</blockquote>
Context<blockquote>
'..Global policies since the 2008 crisis have spurred the expansion of speculative finance to multiples of pre-crisis levels..''Our nation and the world are paying a very heavy price for a failed experiment in Inflationism..' - Doug Noland'..When it comes to understanding the nature and destructive capacities of inflation, the “Austrians” put the “Keynesians” to shame.'</blockquote>