Tags: Hussman | US | Recession | economy

John Hussman: US Falling Into Recession Right Now

Monday, 14 May 2012 12:14 PM

Economist and fund manager John Hussman says we are entering a recession now.

"The joint deterioration in the growth of real personal income, real personal consumption, real final sales, and employment, coupled with our inference of leading economic pressures from 'unobserved components'
methods, creates not only the concern but the expectation that the U.S.
economy is entering a recession — not a quarter or two from today, but most likely at present," Hussman writes in a note to investors.

"Indeed, Europe already appears to be in a broadening recession, which the U.K. has now joined, and the confluence of economic weakness and already strained government debt conditions in Europe is likely to produce disruptive outcomes in the coming quarters."

Editor's Note: Sept. 18 Cover-Up Is a Final Turning for America

Valuations remain unusually rich, says Hussman. Though prospective returns are better than at the 2000 and 2007 peaks, valuations remain more elevated than at any point prior to the late-1990's bubble, save for the period before the 1929 plunge.

“For investors, I should note that by the time people said ‘Huh, something happened' six months into recessions in 2001 and 2008, the market had already lost about 20-25 percent in both cases, was entering free fall, and the best opportunity to reduce risk was long gone,” he says.

Reuters reports that many economists expect Eurostat to show that the eurozone entered its second recession in just three years at the end of March, with households suffering the effects of austerity programs aimed at cutting debt and deficits.

Editor's Note: Sept. 18 Cover-Up Is a Final Turning for America

© 2018 Newsmax Finance. All rights reserved.

1Like our page
Monday, 14 May 2012 12:14 PM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved