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Market Tips: 10-15% Correction Possible
By: CNBC.com | 22 Jun 2009 | 06:02 AM ET
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Global stock markets have enjoyed a strong performance over the past three months, but that could be over and stocks could be facing a 10-to-15 percent correction, one expert told CNBC. Famous economist Nouriel Roubini shared the bearish sentiment by saying there would be a “significant market correction.”

Market Correction is Healthy

Equities are driven in part by the massive increase in global money supply in recent few months, says Stephen Davies, CEO of Javelin Wealth Management. He tells CNBC that markets are due for a 10-15 percent correction.

Significant Market Correction

"There will be a significant market correction" in the coming months, as economic data will offer negative surprises, famous economist Nouriel Roubini, also dubbed "Dr. Doom," told CNBC Monday.

Rally Will Stall

The market rally is set to stall, says Kevin Scully, executive chairman at NRA Capital. He shares his market outlook and investment strategy with CNBC.

Meanwhile, the Federal Reserve is widely expected to keep interest rates on hold when it meets for its two-day policy meeting this week and perhaps for the rest of the year. But investors shouldn’t be surprised if that sends the dollar down against the other major currencies, one expert told CNBC.

Upcoming Fed Meeting -- Dollar Negative Event? 

John Noonan, senior FX analyst at Thomson Reuters, believes the upcoming FOMC meeting is going to be a U.S. dollar negative event. He explains why to CNBC.

Fed Should Give Signal on Rates

U.S. interest rates will remain unchanged for the year, says Uwe Parpart, chief economist and strategist at Asia Cantor Fitzgerald, as he discusses the upcoming FOMC meeting with CNBC.

Fed Cautious Not to Hike Rates Prematurely

The markets have been pricing in U.S. rate hikes in the next 12 months, but with the Fed unlikely to do so at its meeting this week, that might bring lower yields going forward, says Pär Magnusson, senior analyst at Danske Bank, told CNBC.

Eye on the Fed

Discussing what else will be affecting the currency market besides the FOMC meeting, with Sean Callow, senior currency strategist at Westpac Bank, speaking with CNBC.

Road Ahead of the Fed

With the Fed widely expected to keep rates on hold when it delivers its rate decision come Wednesday, Jim Vrondas, manager of corporate business at OzForex, assesses the road ahead for the central bank.

© 2009 CNBC.com
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