The S&P 500 is in a historic bubble and could crash by 63%, markets guru John Hussman warns

• Stocks are in a historic bubble and could crash by over 60%, John Hussman says.
• The markets guru says the S&P 500 looks very expensive and is priced to yield negative returns.
• Hussman agrees with another bubble expert, Jeremy Grantham, that a US recession appears likely.

Stocks are massively overpriced and could crash by over 60%, John Hussman has warned.

"Market valuations stand at one of the three great bubble extremes in US history," rivaling the peaks of 1929 and 2000, the veteran investor and financial historian said in his latest research note. Those two previous periods of reckless speculation ended disastrously, and the current bubble is likely to unwind in similar fashion, he added.