Is that fear in the air? The sound of bubbles popping?
After notching new record highs recently, U.S. stocks have been falling with the S&P 500 yesterday posting its biggest three-day drop in two months (down -4.12% year-to-date). The action in the Nasdaq was anything but pretty with recent highflyers being brought down to earth.
Is a bigger correction at hand? We wanted your take on the market in today’s poll. So we asked: Do you think the S&P 500 will correct 10% or more by July 4th?
At the time of this post, the clear edge goes to the bears with 52% responding YES; 48% saying NO.
One responder who voted YES noted that, “the US economy is slowing more than consensus would like to admit, [and] consequently too many people [are] leaning the wrong way.”
Some YES voters said they believe the S&P 500 would only correct if earnings are as bad as predicted. And a few clarified that though they voted YES, if companies lower the bar, and then beat, then all bets are off and the “game can continue.”
One voter explained, “What should be working in terms of growth style factors isn't working. Slow growth assets continue to lead as the macro data comes in weaker. Bubbles popping. Might need to do more research since…Gartman is bearish...”
Speaking of Gartman, several comments referenced the CNBC market guest Dennis Gartman, editor of the Gartman Letter, who said in a recent interview that he’s getting out of equities and sticking with cash and gold to ride out the recent pullback – "I got scared," he said.
“Gartman’s scared, so we just bottomed out,” wrote one NO voter.
And another: “Dennis Gartman just said he's scared and getting out of stocks and into cash. As clear a buy signal as any.”
Though one responder admitted they thought a correction would happen a long time ago, if earnings do reset, as another comment puts it: "Unleash the Krak…Yellen!"