It’s still not time to panic in the market.
What we’re seeing is a healthy correction after a sizable rally from March 2020 lows. We were long overdue for this – and we don’t expect for it to drag on for too long.
A 10% to 15% correction in the markets would be healthy. That’s according to long-time bull Ed Yardeni, President of Yardeni Research, as noted by CNBC.
“The market has had a huge move since March 23. The Nasdaq is up something like 70%. That’s a melt-up. It’s not as big as what we had in 1999 when we had over 200%. But I wouldn’t want to see a repeat of that. So, I’m actually somewhat comforted by the market taking a break here,” he told CNBC.
Allianz’s Mohamed El-Erian also just told CNBC, “We could have another 10% fall, easily.”
“El-Erian said the market, though, remains decoupled from not only the U.S. economy, but the VIX, treasury and high-yield markets at current levels. With the tech-heavy Nasdaq up double digits and the benchmark index up nearly 7%, the market was ripe for a pullback after five straight months of gains and the strongest August in decades,” added CNBC.
If you are panicking, stay calm. Sit tight. The worst thing an investor can do is sell into chaos. What you have to remember is that markets are resilient, and the latest pullback is getting a bit overdone at this point.
Stay tuned for more on the pullback. We’ll keep you up to date.
The post It’s Not Time to Panic with This Pullback appeared first on Morningology.
