I haven’t posted a third party article in a while, so Hussman’s weekly commentary is a good place to pick back up. Hussman presents a bearish view, but he is not a perma-bear. Rather, he bearish because the prevailing conditions have resulted in negative returns. Here is the link, followed by some excerpts.
http://www.hussmanfunds.com/wmc/wmc100308.htm
Over the past decade, it has been an uncomfortable lesson to accept that investors can be relied on to behave in ways that are ultimately unsustainable and destructive to their wealth, as long as market internals are temporarily supportive…
Many investment professionals have developed a habit of forming expectations based on nothing more than extrapolation of short-term trends in the data, even when those extrapolations are inconsistent with market history or well-established economic relationships.
