HOME DISCIPLINE THE FUNDS MARKET COMMENT RESEARCH & INSIGHT KNOWLEDGE CENTER Investment Research & Insight Archive Archived commentary is historical in nature and should not be assumed to reflect the current investment outlook or investment practices of the Hussman Funds. These comments are provided solely for the purpose of information, instruction and discourse. For current information relating to the Hussman Funds, investors should refer specifically to the current Prospectus and most recent Annual or Semi-Annual Report of the Funds. When Market Trends Break, Even Borderline Data is Recessionary Is the Rush into European Stock Markets Warranted? Does the CAPE Still Work? The Policy Portfolio and the Next Equity Bear Market Fed Leaves Punchbowl, Takes Away Free Lunch (of International Diversification) Five Global Risks to Monitor in 2012 Rising Global Interest Rates Create Headwinds Three Profit Metrics to Avoid Earnings Season Myopia Changes in the Inflation Rate Matter as Much to Investors as the Level An Uneven Global Recovery – Lingering Effects of the Credit Crisis Perspectives on “Non-Traditional” Monetary Policy Do Past 10-Year Returns Forecast Future 10-Year Returns? The Paradox of the Zero Bound Subpar Economic Recovery Gets Premium Market Valuation Wall Street Earnings Expectations Ignore Economic Divergences The Great Divergence An Update on International Market Valuations Business Cycles, Election Cycles, and Potential Risks An Update on Valuations and Forward Earnings Assumptions Bond Yields, Earnings Yields, and Inflation A View from the NBER Recession Indicators Three Observations on Third Quarter Earnings Forward Looking Measures Still Don’t Provide Evidence for a V-Shaped Recovery This Earnings Season, Watch Sales Forward Earnings Imply a Return to Near-Record Profit Margins Without Phoenix Stocks, Volume Continues to Contract Is the Job Market Ready for a Recovery? Earnings Growth Forecasts May Require a Robust Economic Recovery Secular Bear Markets and the Volatility of Inflation Trading Volume Separates Bull Markets from Bear Rallies A Stock Market Rebound Closely Linked with Economic Data Surprises Market Valuations During U.S. Recessions Stock Market Valuations Following the Great Moderation Will Global Markets Take Their Lead from the U.S.? Low Quality’s Round Trip Bad News Bulls Stock Performance Following the Recognition of Recession The Beginning of the Middle Experimenting with the Market’s Median Valuation Anchored Inflation Expectations and the Expected Misery Index Consumer Spending Break-Down Recessions and the Duration of Bad News Price-to-Sales Ratio May Prove Valuable International Markets Show Important Divergences Fixed Investment and the Technology Rally Global Yield Curves, Earnings Growth, and Sector Returns Recessions and Stock Prices Adjusting P/E Ratios for the Market Cycle Private Equity and Market Valuation Must Stocks Rise Following a Cut in the Fed Funds Rate? Profit Margins, Earnings Growth, and Stock Returns Record Profits Don’t Excite Corporate Executives Relative Value and Relative Returns Inflation Data May Continue to Surprise Average Gain in Year Two of Presidential Cycle Hides Important Declines Rally Boosters Large Value Index Bets Big on Economic Growth and Financials Earnings Growth and the Yield Curve Misfit Stocks Investors Opt for Safety Within Risky Investments “Taylor” your Fed Expectations The Anxious Index New Issues Ride Google’s Coattails The Declining Quality of Earnings The Weighting Game Demographics and Financial Markets A Stock Market Without A View Parting Ways: Leading Indicators and the Fed Funds Target Valuing the Fed’s Inflation Fighting Credibility Retirement Savings and Efficient Markets Long-Term Stock Returns: How Low Will They Go? Those Bargain Days – Valuation, Anchoring, and Availability The Future of Investment Management The Battle Between Speed and Stability Stocks for the (Really, Really) Long Run The Market’s Reality Show – A Guide to Earnings Season Why Investment Strategists Have the Toughest Job on Wall Street My Desert Island, All-Time, Top Five Trust Economists, But Verify: Forecasting Fed Moves Can the Small-Cap Rally Last? Irrational Exuberance Turns Seven Corporate Earnings Will Be Up Next Year – Must Stock Prices? Timing the Market – Proper Revival or Let it Rest In Peace? The Economy Freight Trains and Steep Curves Why the Federal Reserve is Irrelevant A Brief Primer on Economics Historical Data Series and Interesting Links Financial Markets Going for the Gold Valuing Foreign Currencies Estimating the Long-Term Return on Stocks The Importance of Measuring Returns Peak-to-Peak Hussman Price/Peak-Earnings Ratio Featured in Barron’s Magazine The Two Essential Elements of Wealth Accumulation Mutual Fund Brokerage Fees and Trading Costs The Use (and Abuse) of Short-Term Performance Bear Market Insights How and Why Options Should be Expensed from Corporate Earnings Just for Kids Let’s Start a Lemonade Stand! Let’s Make a Quarter Disappear! Technical Articles Time Variation in Market Efficiency – A Mixture of Distributions Approach (PDF) Market Efficiency and Inefficiency in Rational Expectations Equilibria (PDF) A Note on the Interpretation of Cross-Sectional Evidence Against the Beta-Expected Return Relationship HOME DISCIPLINE THE FUNDS MARKET COMMENT RESEARCH & INSIGHT KNOWLEDGE CENTER Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. More current performance data through the most recent month-end are available at the Fund's website www.hussmanfunds.com or by calling 1-800-487-7626. Investors should consider the investment objectives, risks, and charges and expenses of the Funds carefully before investing. For this and other information, please obtain a Prospectus and read it carefully. The Hussman Funds have the ability to vary their exposure to market fluctuations depending on overall market conditions, and they may not track movements in the overall stock and bond markets, particularly over the short-term. While the intent of this strategy is long-term capital appreciation, total return, and protection of capital, the investment return and principal value of each Fund may fluctuate or deviate from overall market returns to a greater degree than other funds that do not employ these strategies. For example, if a Fund has taken a defensive posture and the market advances, the return to investors will be lower than if the portfolio had not been defensive. Alternatively, if a Fund has taken an aggressive posture, a market decline will magnify the Fund’s investment losses. The Distributor of the Hussman Funds is Ultimus Fund Distributors, LLC., 225 Pictoria Drive, Suite 450, Cincinnati, OH, 45246. The Hussman Strategic Growth Fund has the ability to hedge market risk by selling short major market indices in an amount up to, but not exceeding, the value of its stock holdings. However, the Fund may experience a loss even when the entire value of its stock portfolio is hedged if the returns of the stocks held by the Fund do not exceed the returns of the securities and financial instruments used to hedge, or if the exercise prices of the Fund's call and put options differ, so that the combined loss on these options during a market advance exceeds the gain on the underlying index. The Fund also has the ability to leverage the amount of stock it controls to as much as 1 1/2 times the value of net assets, by investing a limited percentage of assets in call options. The Hussman Strategic Allocation Fund invests primarily in common stocks, bonds, and cash equivalents (such as U.S. Treasury bills and shares of money market mutual funds, aligning its allocations to these asset classes based on prevailing valuations and estimated expected returns in these markets. The investment strategy adds emphasis on risk-management to adjust the Fund’s exposure in market conditions that suggest risk-aversion or speculation among market participants. The Fund may use options and futures on stock indices and Treasury bonds to adjust its relative investment exposures to the stock and bond markets, or to reduce the exposure of the Fund’s portfolio to the impact of general market fluctuations when market conditions are unfavorable in the view of the investment adviser. The Hussman Strategic Total Return Fund has the ability to hedge the interest rate risk of its portfolio in an amount up to, but not exceeding, the value of its fixed income holdings. The Fund also has the ability to increase the interest rate exposure of its portfolio through limited purchases of Treasury zero-coupon securities and STRIPS. The Fund may also invest up to 30% of assets in alternatives to the U.S. fixed income market, including foreign government bonds, utility stocks, convertible bonds, real-estate investment trusts, and precious metals shares. The Hussman Strategic International Fund invests primarily in equities of companies that derive a majority of their revenues or profits from, or have a majority of their assets in, a country or country other than the U.S., as well as shares of exchange traded funds ("ETFs") and similar investment vehicles that invest primarily in the equity securities of such companies. The Fund has the ability to hedge market risk by selling short major market indices using swaps, index options and index futures in an amount up to, but not exceeding, the value of its stock holdings. These may include foreign stock indices, and indices of U.S. stocks such as the Standard and Poor's 500 Index. Foreign markets can be more volatile than U.S. markets, and may involve additional risks. The Prospectus of each Fund contains further information on investment objectives, strategies, risks and expenses. Please read the Prospectus carefully before investing. The Market Climate is not a formula but a method of analysis. The term "Market Climate" and the graphics used to represent it are service marks of Hussman Strategic Advisors (formerly known as Hussman Econometrics Advisors). The Fund Manager has sole discretion in the measurement and interpretation of market conditions. Information relating to the investment strategy of each Fund is described in its Prospectus and Statement of Additional Information. A schedule of investment positions for each Fund is presented in the annual and semi-annual reports. Except for articles specifically citing investment positions held by the Funds, general market commentary does not necessarily reflect the investment position of the Funds. Open Disclosure Notice in a Separate Window For more information about investing in the Hussman Funds, please call us at: 1-800-HUSSMAN (1-800-487-7626) 513-326-3551 outside of the United States Site and site contents © 2021 Hussman Strategic Advisors