Hussman: Market in a “trap door” situation

The S&P 500 rose 4.7 percent last week, finishing at a record high.

However, even as the bull market continues, John Hussman sees a trap door opening for investors.

“I view the current combination of hypervaluation, price overextension, lopsided bullishness, and unfavorable market internals as a ‘trap door’ situation,” he wrote in his latest market commentary.

“In order to simply touch run-of-the-mill historical valuation norms, the S&P 500 would have to lose somewhere in the range of 65-70% over the completion of this cycle,” he said.