Is the stock market about to have a serious correction?
Doug Kass Presidnt, Seabreeze Partners Management
I disagree with the consensus - that the market is vulnerable to only a shallow correction.
However, Mr. Market is now more clearly exhibiting a new pattern. We are experiencing selling or muted reactions to the good news, whether it's in pending home sales, evidence of improvement in the German economy overnight, ISM, etc.
As someone wise once said, it's not the news; it's (at times) how the market responds to the news that should be the take from Mr. Market. From my perch, the message and strategy is getting more clear. Most investors should now consider reducing overall invested positions as the reward vs. risk is less than exceptional believe the market .
Jim LaCamp Portfolio Manager, Portfolio Focus, RBC Wealth Management
Co-Host, Opening Bell Radio Show, Biz Radio Network
No, not yet. A correction, yes. a serious correction, not now but later.. China's market has led our market and is correcting, valuations are extended, we haven't a real correction since march. A serious correction is more likely to occur next year as economic data disappoints.