“Hussman’s general approach is to look at an “ensemble” of datapoints, and then compare them to previous market periods to see how stocks generally performed after this signals emerged.

He notes that “single lowest point” does not necessarily mean most overvalued (which was in 2000), but merely that the complete ensemble gave the most negative reading.

So what makes this moment so fraught with risk?

Hussman gives a taste of his secret recipe for measuring the market:”

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