The Market is Primed for a 20% Correction
Some financial advisors have a lot of their client portfolios tied up in cash as they await a big downturn. One such advisor, Barry Barlow of Kentucky, thinks that the market is ripe for a 20% decline. "The reason we haven't had a 20-percenter is the artificial stimulus the Federal Reserve pumped into system … That's changing, so it isn't a question of if; it's just a question of when". That said, he thinks that with rates so low, stocks are a must in order to get decent returns for clients, so he and his team focus on companies that trade at major discounts to book value.
FINSUM : The market may be ripe for a 20% fall, but that does not man it is coming anytime soon. This is the kind of mentality that causes one to lose out on a lot of gains.
- Central Banks
- S&P 500