The Good Without the Awful

Most of you are likely already familiar with John Hussman.  His weekly commentary is a must read of economic and market analysis that he has been writing since 1988.  Below is a recent piece that constructs a multi-factor model for the US stock market.

However, before we get to the issue, a quick note that there is a cool conference Mish is putting on in April in Sonoma featuring speakers Chanos, Hussman, Mauldin and others.  I’m hoping to attend, and it’s for a great cause.  For those unfamiliar with ALS, a wonderful read is Tuesdays with Morrie: An Old Man, a Young Man, and Life’s Greatest Lesson

From John’s blog:

“Just a note – Last May, my friend Mike Shedlock’s wife Joanne passed away from an aggressive form of ALS (amyotrophic lateral sclerosis). Mike (“Mish”) is an investment analyst whose work can be found on the Global Economic Trend Analysis site. In Joanne’s memory, and to benefit the Les Turner ALS Foundation, Mish has organized a conference in Sonoma California, on April 5, 2013. I don’t often speak at conferences or schedule media interviews, but that day, Mish, Chris Martenson, Michael Pettis, James Chanos, John Mauldin, and I will be speaking – for a very good cause. The Hussman Foundation has also committed a $100,000 matching grant to the Les Turner ALS Foundation, to encourage donations that will support patient services and research for individuals with ALS. So with winter approaching, if you’re already looking forward to springtime, I hope you’ll join us in California in April. Thanks – John”

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Here is a chart from the piece:

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Download the piece here:

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About

Dr. John Hussman is the president and principal shareholder of Hussman Econometrics Advisors, the investment advisory firm that manages the Hussman Funds ( http://www.hussmanfunds.com). He holds a Ph.D. in economics from Stanford University, and a Masters degree in education and social policy and a bachelors degree in economics from Northwestern University. Prior to managing the Hussman Funds, Dr. Hussman was a professor of economics and international finance at the University of Michigan. In the mid-1980’s, Dr Hussman worked as an options mathematician for Peters & Company at the Chicago Board of Trade, and in 1988 began publishing the Hussman Econometrics newsletter. Virtually all of Dr. Hussman’s liquid assets are invested in the Hussman Funds.