Economist John Hussman: Stocks' Discounting Mechanism Broken

I have been a long time fan of the economist and money manager John Hussman's writings. In fact I own both of his mutual funds. A recent post of his in his Weekly Comment drew my particular attention because it hit upon a question that has been nagging me for years now. It goes like this: What if the change in the composition of the stock markets has affected them in some manner? What if the fact that hedge funds and proprietary trading desks now dominate the daily volumes on the exchanges means something for the individual investor other than it making it ever harder to "win" the investment game? What if the markets no longer function as a long term arbiter of value? Hussman has the same concern. Read it here.