Hedge fund manager John Hussman says high valuations and poor investor sentiment threatened to send stocks plummeting.
Hussman’s preferred rating is higher than it was before the 2000 and 2008 crashes.
He warned of a “trapdoor” scenario in which stocks could quickly plunge.
Hedge fund manager John Hussman is familiar with stock market crashes and bear market rallies.
Hussman saw the dot-com bubble crash in 2000-2002, when the stock market fell about 46 percent. He also experienced the 55 percent slump between 2007 and 2009. The economy collapsed in the course of the global financial crisis.