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Hussman: Expect 7% Annual Total Returns in Stocks

At current levels, John Hussman doesn't expect stocks to outperform.

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Ryan Leggio: Let's talk a little bit about where we currently are in the market. The S&P as we're talking today is right around 1050. The dividend yield of the S&P is slightly under 2%. The 10-year treasury is hovering right around 3% and the 30-year treasury is hovering right around 4%. And given these market conditions, can you let readers know what specifically your outlook is for the S&P generally over the next ten years now?

John Hussman: Right. We have a standard calculation that we frequently update on the website, where we look at the implied long-term return in stocks and that's basically driven by applying a reasonable range of multiples to normalized earnings, and we've talked before about this.

Ryan Leggio has a position in the following securities mentioned above: HSTRX. Find out about Morningstar’s editorial policies.