A notorious market bear who called the 2000 and 2008 crashes warns the S&P 500’s 17% surge since October is a bear market rally — and that stocks are ripe for a decline of up to 60%

• John Hussman says high valuations and poor investor sentiment threaten to tank stocks.
• Hussman’s preferred valuation measure is higher than in 2000 and 2008.
• He warned of a “trap door” scenario, where a crash could happen quickly.

John Hussman has witnessed a few bear market rallies in his day.