⁍ John Hussman — the outspoken investor and former professor who’s long predicted a market collapse — says that today’s current market valuations rival that of the Great Depression and tech bubble.
⁍ His skepticism in valuations is exacerbated by a negative measure of market internals and speculation.
⁍ Extreme valuations suggest a 66% drop in stocks — something he says he ‘expects’ over the course of the complete market cycle.

– Don’t look now, but the stock market is on track to have its worst year since the Great Depression, according to investor John Hussman. In a blog post, the former economics professor and current president of the Hussman Investment Trust says the S&P 500 will likely lose about two-thirds of its value over the next decade, Business Insider reports. “If there is mean-reversion in valuations, as there has been during every market cycle in history, including those since 2000, the outcome will be catastrophic for investors over the completion of this cycle, because it implies a nearly two-thirds loss in the S&P 500 simply to reach pedestrian historical norms,” Hussman writes. “Even a 50% market retreat would bring valuations only to levels matching the 2002 low, which was the highest valuation level ever observed at the completion of a market cycle,” he adds. “Over the completion of the current market cycle, I expect that the entire S&P 500 total return since 2000 will be wiped out. Specifically, I continue to expect the S&P 500 to lose about two-thirds of its value.”

Source: https://www.businessinsider.com/stock-market-crash-expert-warns-of-great-depression-era-valuations-2020-7