John Hussman’s “Exit Rule For Bubbles”

…which brings us to the present, when I have again become no fun at all, largely because of a combination of high confidence, lopsided bullishness, overvaluation, and an overbought multi-year advance. There’s no question that the absence of consequences – to date – has led investors to believe that those consequences simply will not emerge. Once the consequences arrive, the preceding bubble seems obvious, but it’s a regularity of history that speculative episodes are only completely clear in hindsight.

This post was published at Zero Hedge on 09/08/2014.