Outside the Box

Minding the Hinges on Pandora’s Box

John Mauldin

January 7, 2008

This week in Outside the Box John Hussman of The Hussman Funds strives to shed light upon the tumultuous and perplexing state that is the stock market. Having metaphorically, as in the Greek tale, driven by curiosity, opened Pandora's Jar (Box) of financial fantasy and unleashed the evil that has come to pass in the guise of subprime, all that remained was hope. Hussman intertwines hope with caution as we venture into the new year.

John Mauldin, Editor
Outside the Box

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Minding the Hinges on Pandora's Box

By John P. Hussman, Ph.D., January 7, 2008

I've used the word "warning" far more than I would like in recent months. For an investment manager who tries to maintain a fair amount of equanimity about market direction, I don't take this lightly. Importantly, our present defensive investment stance is not based on any forecast of a substantial bear market decline ? we don't need to make such…

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