Hussman: Hard-Won Lessons and the Bird in the Hand

``The equity market is now more overvalued than at any point in history outside of the 2000 peak, and on the measures that we find best correlated with actual subsequent total returns, is 115% above reliable historical norms and only 15% below the 2000 extreme. Unless QE will persist forever, even 3-4 more years of zero short-term interest rates don't "justify" more than a 12-16% elevation above historical norms.''