The S&P 500 Could Fall By 63%

HFA Padded
Rupert Hargreaves
Published on
Updated on

A few weeks ago, I covered the latest offering from GMO’s James Montier and Matt Kadnar, who pointed out that the S&P 500 bubble is now trading at its second or third (depending on which measure you use) most expensive level in history. Using the Shiller P/E, which normalizes earnings from their current value to an approximate trend using a 10-year moving average, the only times’ equities have been more expensive were 1929 and 1999. Meanwhile, according to the Hussman P/E, named after its creator John Hussman, which seeks to provide more accurate reading than the Shiller P/E by normalizing 10-year…

This content is exclusively for paying members of Hedge Fund Alpha

Log In

Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha

Don’t have an account?

Subscribe now and get 7 days free!

HFA Padded

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk