“If we look historically, there are only a handful of occasions when we’ve seen a richly overvalued, still advancing market, with extremely low bearish sentiment, despite rising short-term interest rates. The only instance in recent history was early last summer, just before the market’s mid-year plunge. The instance prior to that was August 1987, at the market’s pre-crash peak. Before that, December 1972, just before the start of the 1973-74 bear market plunge. Before that, mid-1965, just before the market lost over a quarter of its value in a bear market, and began a 17-year period of tepid returns.”

John Hussman