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EssentialThe Essential Conversation

"Pricking" Potential Bubbles in Stocks and Bonds

Featuring John Hussman and Milton Berg

Feb 23, 2021 • 89 minutes

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Essential

The Essential Conversation

"Pricking" Potential Bubbles in Stocks and Bonds

Are stocks in a bubble? How about bonds? Perhaps Bitcoin, too? Milton Berg welcomes John Hussman for a conversation on these important questions.

Featuring John Hussman and Milton Berg

Feb 23, 2021 • 89 minutes

Are stocks in a bubble? How about bonds? Perhaps Bitcoin, too? Milton Berg, founder and CIO of Milton Berg Advisory, welcomes John Hussman, president of Hussman Strategic Advisors, for a conversation on these important questions. Hussman uses his custom equity risk-premium model to explain why, over the next twelve years, he expects the S&P 500 to return an average of negative 4%. Hussman compares the current moment to various historical periods where the S&P 500 underperformed Treasurys. Berg contends that peak-to-trough declines in equities will always result in long periods during which equities underperform Treasurys, and he notes that even buying high-quality stocks at peaks will turn a healthy profit if an investor have a sufficiently long time-horizon. Berg expounds on a bevy of highly favorable market technicals that indicate this rally could continue for some time. Filmed on February 19, 2021. Key learnings: Hussman argues that the S&P 500 will have a negative return for the next 12 years, whereas Berg maintains that, "bubble" or not, this rally will likely continue, both because the Federal Reserve is not worried about inflation as well several key market technical indicators. Hussman and Berg agree that speculative fervor is very notable in Bitcoin, but note that this does not mean it will go down soon. Show More

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

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