by Mike ‘Mish’ Shedlock
John Hussman had an interesting post this week on a The Decade of Zero and its Chaotic Unwinding.
Hussman proposes that stocks and bonds are so ridiculously priced that expected returns in every time frame shorter than 10 years is likely to be negative. He believes stocks will not be flat for 10 years, rather there will be a drawdown of 40% or more at some point.
Hussman also discussed central bank policy and whether or not there was any evidence it works. Let’s continue with the bank policy discussion.
No Evidence QE Increased Industrial Output or Reduced Unemployment