Smoking Securities

Half Baked High Finance

Quote Critique

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“The ‘canonical’ market bottom typically features below-average valuations, falling interest rates, new lows in some major indices on diminished trading volume… and finally, a quick high-volume reversal in breadth….”

-John P. Hussman, Ph.D. (Hussman Funds, 5/22/06)

This strikes me as good advice, though I haven’t lived through enough bear markets to validate its truth.  Given the recent market environment, a new low on diminishing volume is worth keeping an eye open for, though bets on such a condition are foolhardy.  From my point of view, it is best to wait for a reversal to begin, rather than anticipating it due to a gut feeling.

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Written by chucklesamadeus

March 4, 2009 at 1:43 am

Posted in Quote Critique

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