Beware The Next Correction

Beware the next correction in the U.S. stock market. Investors have been conditioned to a certain way of thinking during the post crisis period. Despite any perceived underlying causes, any measurable pullbacks in the stock market are fleeting and are quickly followed by swift and powerful rallies. Thus, these pullbacks are viewed as attractive short-term buying opportunities. All of this may continue to be true as we continue through 2017 and beyond. This includes, as some have recently been speculating in the days ahead, any potential “Trump dump” in the wake of the “Trump rally.” But before moving to repeat this “buy the dip” trade yet again in the future, it is important to consider whether the forces that have enabled these sharp reversals are still in place or whether new conditions may now be at work that may lead to potential frustration instead.

Please click on the link to read more of my article on Seeking Alpha.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: