Overvalued Conditions Persist

Here comes the rain again
Raining in my head like a tragedy
Tearing me apart like a new emotion
--Eurythmics

I continue to vibe with John Hussman's comments on valuation. His thoughts are must reading for anyone investing/trading on a top-down market valuation thesis. Few better than Dr J in this area.

His work continues to show stocks priced to return low returns with high risk (potential for loss) at these levels. Wholly agree. I reach similar conclusions using my discounted cash flow methods on individual companies.

He also rants about pundit/media comments on using untested, short horizon arguments on valuation. That rant feels good, I'm sure. But seriously, John, should we expect anything different from the pundits/media. Lack of rigor. Short term. That's all these people know how to do.

Dr J's work also reminds us that the higher prices go here, the lower the prospective returns and the higher the risk. I suppose that's why that little voice has been chirping in my ear to raise cash.

position in SPX