Hussman: 80% Chance of Big Market Crash

The likelihood of a large market crash is 80%, said investor John Hussman, Bloomberg reported.

Additional amounts of debt not being repaid will cause the stock market to reverse itself, said fund manager Hussman.

Although the S&P 500 Index catapulted by 64 percent from March, the Federal Deposit Insurance Corp. reported 4.94 percent of loans and leases being overdue by the end of the third quarter, reaching an all-time high.

“There is still close to an 80 percent probability that a second market plunge and economic downturn will unfold during the coming year,” Hussman wrote on his Web site. (more)