'..My impression is that future generations will look back on this moment and say “… and this is where they completely lost their minds.” '<blockquote>'I expect the S&P 500 to lose approximately two-thirds of its value over the completion of this cycle. My impression is that future generations will look back on this moment and say “… and this is where they completely lost their minds.” As I’ve regularly noted in recent months, our immediate outlook is essentially flat neutral for practical purposes, though we’re partial to a layer of tail-risk hedges, such as out-of-the-money index put options, given that a market decline on the order of even 5% would almost certainly be sufficient to send our measures of market internals into a negative condition. It’s best not to rely on the ability to execute sales into a falling market, because the range-expansion we’ve recently seen on the upside may very well have a mirror-image on the downside. As usual, we’ll respond to new evidence as it emerges.'
- John P. Hussman, Ph.D.,
Measuring the Bubble, February 1, 2018</blockquote>
Context<blockquote>
'..years of extreme central bank inflationary measures..''Things turned crazy in 2017 .. if the .. sessions of 2018 are any indication, markets are taking “crazy” up a notch.''..monetary knowledge .. of currency reform under difficult conditions you have to go to Carl Menger.'</blockquote>