U.S. stocks closed lower on Thursday, well-known investors: high valuations make U.S. stock returns bleak

China Economic Net Editor’s Note:

U.S. stocks closed sharply lower on Thursday. As of the close, the Dow fell 622.24 points, or 1.78%, to 34,312.03 points; the Nasdaq fell 407.38 points, or 2.88%, to 13,716.72 points; the S&P 500 fell 94.75 points, down 2.12%, to 4380.26 points.

　　Among the large U.S. technology stocks, Meta fell 4.08%, Apple fell 2.13%, Amazon fell 2.18%, Google A fell 3.77%, and Netflix fell 2.87%.

Chip stocks generally fell, Nvidia fell 7.56%, Intel fell 1.37%, TSMC fell 3.11%, Qualcomm fell 3.36%, and AMD fell 4.52%.

　　According to the financial world, John Hussman, the legendary investor who accurately predicted the U.S. stock market crash in 2000 and 2008 and president of Hussman Investment Trust, believes that high valuations have made the U.S. stock market in the next 10 years. Returns have dimmed, with warnings that a return to normal trend levels would mean a 70% drop in the S&P 500.

"We enter 2022 in the deepest financial bubble in U.S. history," Hessman said in a recent report.