A notorious market bear says the defining features of the 1929 and 2000 stock bubbles are glaring once again – and warns that investors face a decade of negative returns

• John Hussman says stocks are in a bubble as investors push valuations upward.
• He says stocks will see 12 years of negative returns ahead.
• He also thinks a 25-35% drop in the S&P 500 will happen “probably quite shortly.”

One could argue that stocks currently stand on a solid foundation.

Yes, valuations are extended and indexes are near all-time highs. But market breadth shows more stocks are advancing than declining, and cash-loaded consumers are licking their chops at the prospect of a full economic reopening later this year.

But according to John Hussman, president of the Hussman Investment Trust, the hallmark signs that stocks are in a bubble are showing.