Empty Hand

Everyone I know, everywhere I go
People need some reason to believe
--Jackson Browne

After turning bullish early in the year, the subsequent 50% runup in equities finds John Hussman back in his hedged stance.

Many folks dismiss the analog comparisons to the 1930s but I believe this period the closest historical comparison to our current situation--that being the popping of a huge debt bubble facilitated by interventionary central banking policies.

Double digit rallies (and declines) were characteristic of the deflationary 1930s. Each time the bulls jumped on board thinking the coast was clear, their heads were handed to them during a subsequent leg lower.

My sense is that we're heading thru this type of cycle again. As such, like Dr John, I wanna manage my bullish bets very carefully.