Buckle up

John Hussman always has some interesting commentary in his weekly posting. This week is no exception...

Buckle up
I suspect that the markets are about to get volatile, possibly to an extent beyond what we observed in October and November. The misguided policy response from Washington has focused almost exclusively on squandering public money and burdening our children with indebtedness in order to defend the bondholders of mismanaged financial institutions.

Unfortunately, he launches right in to a detailed description of how his mutual funds are going to weather the coming storm - tough reading, even if you know about the funds, their investment strategy and years of history. However, there is some good stuff - worth skimming because Hussman is usually right. Worth noting...

• proposal for dealing with financial institutions that are too big to fail
• long-term stock returns prospects
• discussion of US dollar valuation
• indicators of the state of financial markets - VIX and others
• current asset allocations within the Hussman funds including TIPS, precious metals shares, foreign currencies, utility shares.

The day will dawn when it will be very satisfying to say that I read this in Hussman's commentary back in March of oh nine.
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