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John Hussman: Expect A Decade Of 1.7% Portfolio Returns From A Conventional Asset Mix

Excerpt from the Hussman Funds' Weekly Market Comment (2/9/15):

Friday’s employment report showed a 257,000 increase in January non-farm payrolls. This news was followed by a spike in Treasury yields up to 1.96%, a 4% plunge in utility stocks, a 5% plunge in precious metals shares, and took the S&P 500 within a fraction of a percent of December’s record high, before a late-day retreat. These frantic market movements smack of an investment climate dominated by one-dimensional “theme” based behavior - where asset prices have been amped up on yield-seeking speculation, but where the most marginal change in the outlook can trigger a race for the hills or a pile-on, depending on whether the asset has features that are consistent with that theme. On Friday, the knee-jerk reaction was that stronger employment will prompt the Federal Reserve to raise interest rates sooner, creating a scramble to get out of yield-sensitive

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