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'''John Peter Hussman''' (born 15 October 1962) is an American philanthropist, economist, investor, and scientific researcher. He is the director of the Hussman Foundation, which was established in 2004 and seeks to "provide life-changing assistance through medical research, education, and direct aid to vulnerable populations having urgent needs or significant disabilities".
{{short description|American hedge fund manager}}

Hussman holds a PhD in economics from Stanford University, as well as a Masters degree in education and social policy and a bachelors degree in economics from Northwestern University. From 1992 to 1998, he was Professor of Economics and International Finance at the [[University of Michigan]].  In the mid-1980s, Dr. Hussman worked as an options mathematician for Peters & Company at the Chicago Board of Trade, and in 1988 founded his investment company, now known as Hussman Strategic Advisors.<ref>{{Cite web|last=|first=|date=|title=John Hussman PhD|url=https://www.financialsense.com/contributors/john-hussman-phd|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref>

In 1998, Hussman left academic economics to focus on philanthropic efforts, using his continuing investment work to fund charitable projects in autism, global health, education, displaced populations, homelessness, and research focused on the genetics and biology of complex conditions such as autism and multiple sclerosis. He has authored and co-authored numerous research papers in peer-reviewed scientific journals<ref>{{Cite web|last=|first=|date=|title=Suppressed GABAergic inhibition as a common factor in suspected etiologies of autism|url=https://pubmed.ncbi.nlm.nih.gov/11450824/|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref><ref>{{Cite web|last=|first=|date=|title=Basal ganglia and autism - a translational perspective|url=https://pubmed.ncbi.nlm.nih.gov/28730641/|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref><ref>{{Cite web|last=|first=|date=|title=The gap between intention and action: altered connectivity and GABAmediated synchrony in autism|url=http://www.hussmanfoundation.org/research/Hussman_AlteredConnectivityGABAMediatedSynchronyInAutism.pdf|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref><ref>{{Cite web|last=|first=|date=|title=Human Inducible Pluripotent Stem Cells and Autism Spectrum Disorder: Emerging Technologies|url=https://onlinelibrary.wiley.com/doi/abs/10.1002/aur.1570|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref><ref>{{Cite web|last=|first=|date=|title=Targeted massively parallel sequencing of autism spectrum disorder-associated genes in a case control cohort reveals rare loss-of-function risk variants|url=https://molecularautism.biomedcentral.com/articles/10.1186/s13229-015-0034-z|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref><ref>{{Cite web|last=|first=|date=|title=Autism in African American Families: Clinical‐phenotypic findings†|url=https://onlinelibrary.wiley.com/doi/abs/10.1002/ajmg.b.30535|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref><ref>{{Cite web|last=|first=|date=|title=A Genome‐wide Association Study of Autism Reveals a Common Novel Risk Locus at 5p14.1|url=https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1469-1809.2009.00523.x|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref>, including Molecular Autism<ref>{{Cite web|last=|first=|date=|title=A noise-reduction GWAS analysis implicates altered regulation of neurite outgrowth and guidance in autism|url=https://molecularautism.biomedcentral.com/articles/10.1186/2040-2392-2-1|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref>, Nature<ref>{{Cite web|last=|first=|date=|title=GWAS analysis implicates NF-κB-mediated induction of inflammatory T cells in multiple sclerosis|url=https://www.nature.com/articles/gene201623|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref>, and Frontiers in Pharmacology<ref>{{Cite web|last=|first=|date=|title=Cellular and Molecular Pathways of COVID-19 and Potential Points of Therapeutic Intervention|url=https://www.frontiersin.org/articles/10.3389/fphar.2020.01169/full|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref>.

Hussman has served on non-profit boards of institutions including the University of Miami, the Baudhuin School for Autism at Nova Southestern University, and the Autism Society of America. Hussman and his wife Terri also serve on the boards of Maryland charities including the The Light House Homelessness Prevention Center, and Hospice of the Chesapeake. Hussman was honored as the 2013 Philanthropist of the Year by the AFP, with introductory remarks by Towson University President Maravene Loeschke and former U.S. President Jimmy Carter <nowiki>[http://tunews.towson.edu/2013/11/07/hussman-stinars-among-those-honored-for-philanthropy/]</nowiki> <nowiki>[https://www.youtube.com/watch?v=Fr4Ca5FesNc&feature=youtu.be]</nowiki>.

In 2001, Hussman proposed what is now known as the “excitatory/inhibitory” theory of autism in the Journal of Autism and Developmental Disorders. Drawing on evidence from genetic, neuroanatomical, and neurobiological research, he proposed: "Although it is possible that the breadth of impairments in autism are caused by multiple defects in relatively independent systems, autism may instead reflect dysfunction in a single factor shared in common by many systems. Specifically, the severe disruptions observed in autism may be linked to suppression of GABAergic inhibition, resulting in excessive stimulation of glutamate-specialized neurons and loss of sensory gating. This view recognizes the possibility of multiple etiologies in autism. That is, there may exist a spectrum of genetic and environmental factors which impair inhibitory tone. Loss of inhibitory control from GABAergic neurons may result in hyperexcitation of vulnerable target neurons. Such a model may provide a reasonable characterization of autism." <nowiki>[http://www.hussmanfoundation.org/research/Hussman_JADD2001.pdf]</nowiki> <nowiki>[https://www.researchgate.net/profile/Laura_Fusar-Poli/publication/282659531_Pharmacological_Modulation_of_GABA_Function_in_Autism_Spectrum_Disorders_A_Systematic_Review_of_Human_Studies/links/5b5f6cdb0f7e9bc79a6f4e70/Pharmacological-Modulation-of-GABA-Function-in-Autism-Spectrum-Disorders-A-Systematic-Review-of-Human-Studies.pdf ]</nowiki> <nowiki>[https://www.hussmanautism.org/ei-imbalance-origins/]</nowiki>. Rubenstein and Merzenich later cited Hussman’s work in 2003, increasing attention to the hypothesis, and stating it in terms of an increased ratio of excitation to inhibiton (E/I) <nowiki>[https://onlinelibrary.wiley.com/doi/full/10.1034/j.1601-183X.2003.00037.x]</nowiki>. This mechanism has since become a well-established line of research in the autism field.

Hussman is a polarizing figure in the financial markets. After spending much of the early-1990’s as a “lonely raging bull” <nowiki>[https://www.latimes.com/archives/la-xpm-1992-07-10-fi-1913-story.html]</nowiki>, he became increasingly bearish in the late-1990’s <nowiki>[https://www.hussmanfunds.com/html/barrons.htm ]</nowiki>. He successfully anticipated the collapse of [[dot-com bubble]], as well as the 2008–09 global financial crisis, then reversed his view about valuations after the market collapse in late-2008, declaring “U.S. stocks are now undervalued” <nowiki>[https://www.hussmanfunds.com/wmc/wmc081020.htm]</nowiki>.

By September 2010, Hussman managed US$6.7 billion. However, between 2013 and 2017, he became increasingly [[Market sentiment|''bearish'']], asserting that the "[[quantitative easing]]" ("QE") and zero interest rate policies of the Federal Reserve had contributed to a “hypervalued market” <nowiki>[https://www.marketwatch.com/story/all-this-volatility-is-following-one-bears-script-for-a-60-tumble-in-the-stock-market-2018-04-10]</nowiki>, Hussman’s investment performance suffered as a result, and he was labeled a “permabear”. [[John Hussman#%20msocom%203|[JPH3]]] His performance during this period sharply lagged the S&P 500, in contrast to the years prior to 2013. By late-2017,, assets under management had declined to USD 1 billion.Hussman has regularly commented on his error during that period <nowiki>[https://www.hussmanfunds.com/comment/mc200130/]</nowiki>, tracing it to his insistence on stress-testing his methods against Depression-era data following the global financial crisis, which led him to emphasize the importance of “overvalued, overbought, overbullish” conditions that had historically been reliable indications of market tops <nowiki>[https://www.forbes.com/sites/bobcarlson/2018/12/21/the-mutual-fund-for-this-market-environment/?sh=344868fe3ad3]</nowiki>. In late-2017, he gave up relying on those “speculative limits,” and lamented “Evidently, once interest rates hit zero, so did the collective IQ of Wall Street.”[ <nowiki>https://www.hussmanfunds.com/comment/mc180302/</nowiki>].

Hussman is known for a strongly quantitative approach to macro-investing and publishes a regular market comment freely available on his website, that updates his projections of 10-12 year returns for the S&P 500, which remained below 0% from 2015 until[[John Hussman#%20msocom%204|[JPH4]]]  early-2020, when the market plunged in response to the COVID-19 pandemic <nowiki>[https://www.hussmanfunds.com/comment/observations/obs200301/]</nowiki>. In July 2017, Hussman said that markets were "at the most offensive level of overvaluation in history" — beyond even 1929 and 2000". In June 2018, he projected a market decline in excess of 64% (two-thirds) by the trough of the market cycle.  He reiterated that projection of a two-thirds market loss in November 2020, after a rebound in the S&P 500 back to its pre-pandemic highs <nowiki>[https://www.hussmanfunds.com/comment/mc201116/]</nowiki>.{{short description|American hedge fund manager}}
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'''John Peter Hussman''' (born 15 October 1962) is an American [[stock market]] analyst and [[mutual fund]] owner. From 1992 to 1998, Hussman was Professor of Economics and International Finance at the [[University of Michigan]].<ref name="foundation">{{cite web|url=http://www.hussmanautism.org/team/hussman-john-p-ph-d-ms-ed/|publisher=The Hussman Institute for Autism|title=John Peter Hussman|date=2018}}</ref><ref name="bi">{{cite web|url=http://www.businessinsider.com/henry-blodget-john-hussman-why-i-quit-academia-and-became-a-money-manager-2009-6|title=John Hussman: Why I Quit Academia And Became A Money Manager|last=Blodget|first=Henry|date=2009-06-02|website=[[The Business Insider]]|accessdate=2009-11-12}}</ref> In 1998–2000, Hussman set up Hussman Strategic Advisors, a hedge fund which successfully anticipated the [[dot-com bubble]].<ref name="fortune">{{cite magazine|url=http://fortune.com/2017/03/09/stock-market-sell-bubble/|title=Famed Investor Predicts Historic Market Drop|author=JEFF BUKHARI|magazine=[[Fortune (magazine)|Fortune]]|date=9 March 2017|quote=That’s the view of John Hussman, president of the mutual fund Hussman Investment Trust, seasoned investor, and Stanford University economics PhD. Hussman says you can expect the S&P 500 to return no more than 1% on average over the next decade. Sooner than that, he predicts, the stock market may plunge as much as 60%}}</ref> Hussman also successfully anticipated the 2008–09 credit crisis,<ref>{{cite magazine|url=https://www.kiplinger.com/article/investing/T038-C000-S002-interview-john-hussman.html|title=Interview with John P. Hussman|magazine=[[Kiplinger's Personal Finance]]|author=ELIZABETH LEARY|date=5 July 2009|quote=Among mutual fund managers, John Hussman, who runs Hussman Strategic Growth (symbol HSGFX), has one of the best records of correctly judging when stocks will pay off and when they'll deliver lemons. From its inception in 2000 through June 5, Hussman's unconventional fund gained 8.9% annualized. Over the same period, Standard & Poor's 500-stock index lost an average of 3.1% per year}}</ref> but has severely under performed since then.

In September 2010, Hussman managed US$6.7 billion.<ref name="wsj"/><ref name="fortune"/> Since the post-2013 recovery, Hussman has remained ''[[market sentiment|bearish]]'', asserting that central banking "[[quantitative easing]]" ("QE") has distorted markets and created a false recovery, and inflated asset prices, which had led to extremely poor investment performance.<ref name="wsj">{{cite news|url=https://www.wsj.com/articles/a-stock-permabear-wont-give-in-1504576920|title=A Stock ‘Permabear’ Won’t Give In|newspaper=[[Wall Street Journal]]|author=Daisy Maxey|date=4 September 2017}}</ref> As of 30 September 2019, Hussman's Strategic Growth fund had a 10-year average annual loss of -7.23% (-53% total loss), compared to a 13.24% average annual gain (+250% total gain) by its benchmark, the S&P 500.<ref>{{Cite web|url=https://www.hussmanfunds.com/pdf/hsgperf.pdf|title=Strategic Growth Fund Performance|last=|first=|date=|website=|url-status=live|archive-url=|archive-date=|access-date=}}</ref> By 2018, asset under management declined to USD 1 billion.<ref name="wsj"/><ref>{{cite news|url=https://www.wsj.com/articles/learning-from-a-lagging-mutual-fund-1426259640|newspaper=[[Wall Street Journal]]|date=13 March 2015|title=Learning From a Lagging Mutual Fund|quote=A net $4.5 billion has been withdrawn from the fund since January 2011. The fund now manages 87% less money than it did at its peak in late 2010.|author=Morgan Housel}}</ref>

Hussman is also known for a strongly quantitative approach to macro-investing and produces a regular newsletter freely available on this website, that updates Hussman's forecast 10–year return on the S&P500, which since 2015, has remained below 0%. In July 2017, Hussman said that markets were "at the most offensive level of overvaluation in history" — even worse than in 1929 and 2000".<ref>{{cite web|url=https://www.businessinsider.com/stock-market-news-could-be-headed-for-one-of-worst-disasters-in-history-2017-10|website=[[Business Insider]]|author=Joe Ciolli|title=A flawed argument used by Warren Buffett could be setting stocks up for 'one of the worst disasters in history'|quote=And when discussing price levels, he doesn't exactly pull any punches, saying US equities are now "at the most offensive level of overvaluation in history" — even worse than in 1929 and 2000.}}</ref> In June 2018, Hussman forecast a fall in excess of 64% (two thirds).<ref name="marketwatch">{{cite web|url=https://www.marketwatch.com/story/this-prophet-of-doom-predicts-stock-market-will-plunge-more-than-50-2018-07-30|title=This ‘prophet of doom’ predicts stock market will plunge more than 50%|publisher=MarketWatch|author=Sue Chang|date=31 July 2018|quote=Hussman’s claim to fame includes forecasting the market collapses of 2000 and 2007–2008. [...] In his most recent call, he argued that measured “from their highs of early-2018, we presently estimate that the completion of the current cycle will result in market losses on the order of -64% for the S&P 500 index, -57% for the Nasdaq-100 Index, -68% for the Russell 2000 index, and nearly -69% for the Dow Jones Industrial Average.”}}</ref>

⚫
In addition to his activity as an investor, in 2004 he established the Hussman Foundation which seeks to "provide life-changing assistance through medical research, education, and direct aid to vulnerable populations having urgent needs or significant disabilities".<ref name="foundation"/>


==See also==
==See also==

Revision as of 14:51, 25 November 2020

John Peter Hussman (born 15 October 1962) is an American philanthropist, economist, investor, and scientific researcher. He is the director of the Hussman Foundation, which was established in 2004 and seeks to "provide life-changing assistance through medical research, education, and direct aid to vulnerable populations having urgent needs or significant disabilities".

Hussman holds a PhD in economics from Stanford University, as well as a Masters degree in education and social policy and a bachelors degree in economics from Northwestern University. From 1992 to 1998, he was Professor of Economics and International Finance at the University of Michigan.  In the mid-1980s, Dr. Hussman worked as an options mathematician for Peters & Company at the Chicago Board of Trade, and in 1988 founded his investment company, now known as Hussman Strategic Advisors.[1]

In 1998, Hussman left academic economics to focus on philanthropic efforts, using his continuing investment work to fund charitable projects in autism, global health, education, displaced populations, homelessness, and research focused on the genetics and biology of complex conditions such as autism and multiple sclerosis. He has authored and co-authored numerous research papers in peer-reviewed scientific journals[2][3][4][5][6][7][8], including Molecular Autism[9], Nature[10], and Frontiers in Pharmacology[11].

Hussman has served on non-profit boards of institutions including the University of Miami, the Baudhuin School for Autism at Nova Southestern University, and the Autism Society of America. Hussman and his wife Terri also serve on the boards of Maryland charities including the The Light House Homelessness Prevention Center, and Hospice of the Chesapeake. Hussman was honored as the 2013 Philanthropist of the Year by the AFP, with introductory remarks by Towson University President Maravene Loeschke and former U.S. President Jimmy Carter [http://tunews.towson.edu/2013/11/07/hussman-stinars-among-those-honored-for-philanthropy/] [https://www.youtube.com/watch?v=Fr4Ca5FesNc&feature=youtu.be].

In 2001, Hussman proposed what is now known as the “excitatory/inhibitory” theory of autism in the Journal of Autism and Developmental Disorders. Drawing on evidence from genetic, neuroanatomical, and neurobiological research, he proposed: "Although it is possible that the breadth of impairments in autism are caused by multiple defects in relatively independent systems, autism may instead reflect dysfunction in a single factor shared in common by many systems. Specifically, the severe disruptions observed in autism may be linked to suppression of GABAergic inhibition, resulting in excessive stimulation of glutamate-specialized neurons and loss of sensory gating. This view recognizes the possibility of multiple etiologies in autism. That is, there may exist a spectrum of genetic and environmental factors which impair inhibitory tone. Loss of inhibitory control from GABAergic neurons may result in hyperexcitation of vulnerable target neurons. Such a model may provide a reasonable characterization of autism." [http://www.hussmanfoundation.org/research/Hussman_JADD2001.pdf] [https://www.researchgate.net/profile/Laura_Fusar-Poli/publication/282659531_Pharmacological_Modulation_of_GABA_Function_in_Autism_Spectrum_Disorders_A_Systematic_Review_of_Human_Studies/links/5b5f6cdb0f7e9bc79a6f4e70/Pharmacological-Modulation-of-GABA-Function-in-Autism-Spectrum-Disorders-A-Systematic-Review-of-Human-Studies.pdf ] [https://www.hussmanautism.org/ei-imbalance-origins/]. Rubenstein and Merzenich later cited Hussman’s work in 2003, increasing attention to the hypothesis, and stating it in terms of an increased ratio of excitation to inhibiton (E/I) [https://onlinelibrary.wiley.com/doi/full/10.1034/j.1601-183X.2003.00037.x]. This mechanism has since become a well-established line of research in the autism field.

Hussman is a polarizing figure in the financial markets. After spending much of the early-1990’s as a “lonely raging bull” [https://www.latimes.com/archives/la-xpm-1992-07-10-fi-1913-story.html], he became increasingly bearish in the late-1990’s [https://www.hussmanfunds.com/html/barrons.htm ]. He successfully anticipated the collapse of dot-com bubble, as well as the 2008–09 global financial crisis, then reversed his view about valuations after the market collapse in late-2008, declaring “U.S. stocks are now undervalued” [https://www.hussmanfunds.com/wmc/wmc081020.htm].

By September 2010, Hussman managed US$6.7 billion. However, between 2013 and 2017, he became increasingly bearish, asserting that the "quantitative easing" ("QE") and zero interest rate policies of the Federal Reserve had contributed to a “hypervalued market” [https://www.marketwatch.com/story/all-this-volatility-is-following-one-bears-script-for-a-60-tumble-in-the-stock-market-2018-04-10], Hussman’s investment performance suffered as a result, and he was labeled a “permabear”. [JPH3] His performance during this period sharply lagged the S&P 500, in contrast to the years prior to 2013. By late-2017,, assets under management had declined to USD 1 billion.Hussman has regularly commented on his error during that period [https://www.hussmanfunds.com/comment/mc200130/], tracing it to his insistence on stress-testing his methods against Depression-era data following the global financial crisis, which led him to emphasize the importance of “overvalued, overbought, overbullish” conditions that had historically been reliable indications of market tops [https://www.forbes.com/sites/bobcarlson/2018/12/21/the-mutual-fund-for-this-market-environment/?sh=344868fe3ad3]. In late-2017, he gave up relying on those “speculative limits,” and lamented “Evidently, once interest rates hit zero, so did the collective IQ of Wall Street.”[ https://www.hussmanfunds.com/comment/mc180302/].

Hussman is known for a strongly quantitative approach to macro-investing and publishes a regular market comment freely available on his website, that updates his projections of 10-12 year returns for the S&P 500, which remained below 0% from 2015 until[JPH4]  early-2020, when the market plunged in response to the COVID-19 pandemic [https://www.hussmanfunds.com/comment/observations/obs200301/]. In July 2017, Hussman said that markets were "at the most offensive level of overvaluation in history" — beyond even 1929 and 2000". In June 2018, he projected a market decline in excess of 64% (two-thirds) by the trough of the market cycle.  He reiterated that projection of a two-thirds market loss in November 2020, after a rebound in the S&P 500 back to its pre-pandemic highs [https://www.hussmanfunds.com/comment/mc201116/].

John Hussman
Born
John Peter Hussman

(1962-10-15) October 15, 1962 (age 61)
NationalityAmerican
Alma mater
Northwestern University
(B.Sc 1979–1983)
Occupations
Prof. International Finance University of Michigan (1992–98)
Known forFounding and leading Hussman Strategic Advisors
SpouseTheresa "Terri" Hussman[12]
Children4
Websitehttps://www.www.hussman.com

See also

References

  1. ^ "John Hussman PhD".{{cite web}}: CS1 maint: url-status (link)
  2. ^ "Suppressed GABAergic inhibition as a common factor in suspected etiologies of autism".{{cite web}}: CS1 maint: url-status (link)
  3. ^ "Basal ganglia and autism - a translational perspective".{{cite web}}: CS1 maint: url-status (link)
  4. ^ "The gap between intention and action: altered connectivity and GABAmediated synchrony in autism" (PDF).{{cite web}}: CS1 maint: url-status (link)
  5. ^ "Human Inducible Pluripotent Stem Cells and Autism Spectrum Disorder: Emerging Technologies".{{cite web}}: CS1 maint: url-status (link)
  6. ^ "Targeted massively parallel sequencing of autism spectrum disorder-associated genes in a case control cohort reveals rare loss-of-function risk variants".{{cite web}}: CS1 maint: url-status (link)
  7. ^ "Autism in African American Families: Clinical‐phenotypic findings†".{{cite web}}: CS1 maint: url-status (link)
  8. ^ "A Genome‐wide Association Study of Autism Reveals a Common Novel Risk Locus at 5p14.1".{{cite web}}: CS1 maint: url-status (link)
  9. ^ "A noise-reduction GWAS analysis implicates altered regulation of neurite outgrowth and guidance in autism".{{cite web}}: CS1 maint: url-status (link)
  10. ^ "GWAS analysis implicates NF-κB-mediated induction of inflammatory T cells in multiple sclerosis".{{cite web}}: CS1 maint: url-status (link)
  11. ^ "Cellular and Molecular Pathways of COVID-19 and Potential Points of Therapeutic Intervention".{{cite web}}: CS1 maint: url-status (link)
  12. ^ "Hussman, Stinars among those honored for philanthropy". Towson University. 7 November 2013.

External links

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