Most Western stock indexes will suffer a 10-to-15 percent correction over the coming weeks and hit a low in the middle of October, but that will mark a buying opportunity for the rest of the year, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC.
September is likely to bring volatility to the major stock markets, but not the sharp declines expected by many analysts, Griffiths said, adding that in early October it could be a different story.
The volatility in September “tends to set up a climactic fall to make a low, a buying opportunity in October, usually about the middle of October,” Griffiths said.
Griffiths added that the predictions were based on the seasonal performance of the major indexes and it wasn’t affected by people anticipating the move.
“Everybody’s known this for 100 years and it still happens, it’s a sort of persistent thing that the market does do,” he said.
“I think it will come into the bracket of 10-to-15 percent (decline) in most Western indices,” he said.
The move “will give you a buying opportunity for a run through the year-end from middle of October in most Western markets,” he added.
Griffiths thinks that there are buying opportunities in the bond market and that gold may not have yet reached its peak. Watch the video above for more.
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