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Stock market?
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PRNDL
Posted 12/22/2018 10:06 (#7188891 - in reply to #7188367)
Subject: RE: Stock market?


Texas & western Iowa

KevinM - 12/22/2018 06:22

Is this just a correction or something more? Seems to be a lot of hand wringing. I'd guess we are in the sell to make margin calls territory now? With eom and eoy book squaring does it get better or worse? How much of a correction to expect? Thanks.

Hard to tell, but this pull back seems fairly orderly compared to some of the other sell offs I've seen since the early 1990s. So far, this feels like a typical correction as opposed to a bear market in stocks. Having said that, many things at play right now could keep pushing this further down and keep it there for an extended period.

I personally started slowly rebalancing out of stocks quite some time ago. One of several indicators I use is the CAPE 10 chart. Anything over 25 starts feeling overvalued to me personally. (it's recently been at 33 and now at 26.75).

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