🚨The Stock Market Is Priced for Perfection. History Says Be Careful.
A major valuation measure from Hussman Strategic Advisors shows U.S. equities trading near the most extreme levels in modern history. This is not a timing signal, but it is a serious warning for long-
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There are moments in market history when investors stop asking a basic question:
What am I paying for the actual economic output of the businesses I own?
That question matters.
The chart below, from Hussman Strategic Advisors, compares the market value of U.S. nonfinancial companies with the gross value added they produce.
In simpler terms, it asks:
How much are investors paying for each dollar of real corporate economic output?
And right now, the answer is uncomfortable.
Investors are paying one of the highest prices in modern financial history.
Higher than 1929.
Higher than the late 1960s.
Higher than the dot-com bubble.
Higher than 2007.
Higher than 2021.
That does not mean the market has to crash tomorrow.
But it does mean the broad U.S. stock market is priced for a very optimistic future.
And history tells us that when investors pay extreme prices for corporate output, future long-term returns are usually poor.
What the Chart Measures
