The stock market's latest downturn may have taken some by surprise, but these two Wall Street strategists called it just as it began.
On Jan. 26, Stifel Chief Equity Strategist Barry Bannister wrote the S&P 500 would see a correction of at least 5 percent in the midst of a sharp rise in yields as central banks tighten monetary policy.
Since then, the benchmark 10-year U.S. note yield has traded near four-year highs. The Federal Reserve expects to raise rates three times this year with some experts fearing they may raise more often than that.
Stifel's Bannister said the Fed would lead other central banks to tighter monetary policy. On Thursday, the Bank of England warned it could implement earlier and bigger rate hikes as the United Kingdom's economy continues to improve.
Meanwhile, Goldman Sachs' Peter Oppenheimer warned clients on Jan. 29 that correction signals were "flashing" and advised clients to prepare for a correction.
"Our Goldman Sachs Bull/Bear Market Indicator is at elevated levels, although the continuation of low core inflation and easy monetary policy suggests that a correction is more likely than a bear market," Oppenheimer wrote.
The S&P 500 closed in correction territory on Thursday, down 10 percent from its one-year high. The Dow Jones industrial average, meanwhile, is headed for its worst weekly performance since October 2008 after plummeting more than 1,000 points on Thursday.