In the year 2023, US stocks have experienced a remarkable surge, attributed to factors such as moderating inflation, waning concerns about a recession, and the buzz surrounding artificial intelligence. However, this optimistic trajectory might not be sustainable, as indicated by John Hussman.

John Hussman, a veteran bear on the stock market who accurately predicted the crashes of 2000 and 2008, has recently reiterated his bleak perspective on US stocks. He is cautioning against a staggering 64% plummet in the S&P 500 index, which he believes will burst what he terms an "extreme yield-seeking speculative bubble."

As the president of Hussman Investment Trust, Hussman's viewpoint stems from his assessment of stretched equity valuations and unfavorable market "internals." He contends that a significant decline in stock prices is necessary to realign market conditions to a more normal state.

While the S&P 500 has gained 19% in the current year, bringing its cumulative increase since the conclusion of 2008 – the year of the global financial crisis – to over 400%, this has pushed its price-earnings ratio to approximately 26, an elevation from last year's levels hovering near 19, according to data provided by macrotrends.net.