This is trend following radio where great thinking comes alive.

Nobel Prize winners, legendary traders, bestselling authors, and the pros that know what drive us irrational human beings.

I am your host, Michael Covel, not filtered, raw, honest.

That's my passion.

Something a little different today.

I'm going to reach into an associate of mine who's not yet been on my show.

I think I'll get him one day. A guy named John Hussman who runs Hussman funds. John is a value guy. He is not a trend following guy, not a quant guy in the way that I think of quant.

John is a very smart guy and and John has a very unique way, a very straightforward way of describing current market environments

compared to past market environments. Now, some people will immediately think that I'm telling them to do something.

I'm not. John might be. That's his business. But what I want to do is to take some of John's

words and let you think about them. Let you think about what John is describing where we are right now in

2021. John starts off his February 2021 newsletter with a quote, quote, the nutshell is this.

The old line economy stocks just don't work because they have earnings

and eventually rising interest rates impact earnings. New economy stocks have no earnings

so investors don't see a need to exit. End quote. It was a Wall Street analyst on CNBC,

early March 2000, and as John notes, said with a perfectly straight face.

You market historians out there might know that March of 2000 was the high of the dot com bubble.

And from that high of the dot com bubble, the NASDAQ dropped down between 77 and 83%.

Depending, I think, on whether you looked at a close or an intraday drop.

77%.

Now think about it.

For all of you folks out there that think you're smart, you think you got the magic crystal ball, we got a great bull market. We arguably have a massive bubble market. Can you imagine losing 77% of what you see on your day trading screen every day. Good question to ask, right? Let me jump back

...