'..The belief that zero interest rates offer no alternative but to accept risk in stocks is valid only if one believes that stocks cannot experience profoundly negative returns..'<blockquote>'Investors are now facing the second most extreme episode of equity market overvaluation in U.S. history (current valuations on similar measures already exceed those of 1929). The belief that zero interest rates offer no alternative but to accept risk in stocks is valid only if one believes that stocks cannot experience profoundly negative returns. We know precisely how similar valuation extremes have worked out for investors over the completion of the market cycle, and those outcomes have never been deferred indefinitely. The only question at present is how many grains are left in the hourglass. On that front, the outlook remains unfavorable at present. Our attention remains fixed on measures of investor risk preferences, as conveyed through the uniformity or divergence of market internals, and the immediacy of our concerns will ease if the evidence changes.'
- John P. Hussman,
How Market Cycles Are Completed, October 26, 2015</blockquote>
Context<blockquote>
'..central bankers have blown the biggest equity and junk bond market bubbles in history..''As the bubble collapsed, banks and other financial institutions plunged into insolvency..'(Big One: 2015 - 2017) - 'The Fall of a High-Yield Fund Echoes 2007 Crunch'</blockquote>