John Hussman's View Of The Market

John Hussman's weekly commentary, he notes the market is at a point where he can "begin" to take on some equity risk. He notes though:

"That's not to say that I believe stocks have “hit their lows.” We always have to allow for the market to move significantly and unexpectedly, and there is plausible downside risk from here. Our activity as investors is not to try to identify tops and bottoms – it is to constantly align our exposure to risk in proportion to the return that we can expect from that risk, given prevailing evidence."

He still has the equity in the company's Strategic Growth Fund (HSGFX) hedged 70-80%.

The commentary, The Stock Market is Not in "Uncharted Territory" begins:

One of the fallacies about the recent financial turbulence is that the markets are in “uncharted territory” and that there are no historical precedents for the volatility, panic, or economic uncertainty that we've observed. To make statements like this is to admit that one has not examined historical evidence prior to the 1990's. The fact is that we've observed similar panics throughout market history. This decline has been deeper and more rapid than most, but that is largely a reflection of the rich valuation and overbought condition that characterized the market in 2007 (see the July 16, 2007 comment A Who's Who of Awful Times to Invest).

The entire commentary is a worthwhile read.

Source:

The Stock Market is Not in "Uncharted Territory"
Hussman Funds
By: John P. Hussman, Ph.D.
November 17, 2008
http://www.hussmanfunds.com/wmc/wmc081117.htm