Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Correction scorecard: What's causing all the worry?

What's behind all these correction calls

Correction is the call du jour in the stock market these days, and it's getting more and more converts.

A bevy of high-profile names have warned lately that the market is on the doorstep of a major move lower. From long-term market bulls such as Piper Jaffray to short-term traders such as Dennis Gartman, expectations are high that the major averages are poised for a big dip, with calls varying from 10 percent or so all the way up to 25 percent.

After a move higher of 180 percent since the March 2009 lows and no true market correction—historically regarded as a downturn of 10 percent or more—for two years, the current round of dire predictions, as much as anything, may be a case of wishful thinking for investors looking for a better entry point.