John Hussman On The Anatomy Of A Textbook Pre-Crash Bubble | Exploring Markets

John Hussman On The Anatomy Of A Textbook Pre-Crash Bubble

John Hussman is out with his weekly commentary. This one is called "A Textbook Pre-Crash Bubble." Hussman has been a bear for quite some time. And quite frankly he's also been wrong for quite some time. Granted, at this pace he's bound to get one of his bearish calls right. 

We read his note and one comment stuck out. His belief is that micro volatility, on 10-minute intervals, may be a crash precursor. He likened it to a spinning quarter:
"Spin a quarter on the table and watch it closely. You’ll notice that between the point where it spins smoothly and the point it falls flat, it will start vibrating uncontrollably at increasingly rapid frequency. That’s a phase transition."
Read the full note here
- Henry Blodgett's comments on an early Hussman piece