Is the stock market due for a correction in 2021? Here’s what some experts think

MarketWatch2021-02-10

A pullback for the Dow Jones Industrial Average and the S&P 500 index on Tuesday halted the longest win streak for stocks in months, but a major concern for investors remains: Is there a major ...

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Comments

Gibbie
2021-02-14
Gibbie
Better to have correction rather than crash
- AndrewL:
  Indeed
octa8
2021-02-13
octa8
[強]
Jon777
2021-02-11
Jon777
Minor correction for a bull run in the ox year ???
jonbeloved
2021-02-11
jonbeloved
Stock market is like a roller coaster. Whatever goup will come down and whatever come down will go up. Just brace yourself for the ride.
- Jon777:
  ???
CL777
2021-02-11
CL777
For US markets maybe
Xuanziepie
2021-02-11
Xuanziepie
Hopefully no correction
- SafetyFirst:
  agree
- Jon777:
  Correction is healthy For the market to go higher

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Meaning, we’ve got a strong economic recovery that’s visible to everyone. The earnings season’s been good so far…and people have bought into it,” the Morgan Stanley analyst said.\nHe cautioned, however, that the market remains in a “a bit of a fragile state,” and warned that leverage swirling in the system could make pullbacks of 3% or 5% more of the norm.\nWilson did say, however, that the re-emergence of individual investors in financial markets would be a force to be reckoned with, and that they currently represent the marginal buyer on Wall Street keeping asset prices buoyant.\nKeith Lerner, chief market strategist at Truist Advisory Services, said that concerns of a stock bubble are overdone and not supported by the current batch of fourth-quarter earnings results, which his firm estimates will be the best since the 2008 financial crisis.\nTRUIST ADVISORY SERVICES INC./SUNTRUST ADVISORY SERVICES INC.\n“Although there are frothy segments of the market that are detached from fundamentals, we do not see bubble conditions more broadly,” Lerner wrote in a research report dated Tuesday.\n“Instead, we see a stock market that is trading at a premium to historical valuations—partly justified by low rates, a shift in sector composition toward higher-valued growth sectors, supportive monetary and fiscal policy, as well as cheaper access to markets (i.e., secular decline in commissions and fund fees),” the Truist analysts added, noting that a lower barrier to entry for individual investors also was providing support for stock values.\nMeanwhile, Daniel Pinto, a co-president at JPMorgan Chase & Co.,told CNBC in a Q&A that he expects the stock market to grind higher.\n“I think the market will gradually grind up during the year,” he told the news network. “I don’t see a correction anytime soon, unless the situation changes dramatically,” he said, describing possible downturns as mini corrections that won’t necessarily change the overall bullish trend.\nWhat could change things?\nNaeem Aslam, chief market analyst at AvaTrade, in a Tuesday report said that optimism in the U.S. market is driven by three actors: Support from monetary and fiscal policy, progress in COVID vaccinations and the solid quarterly results.\n“Basically, it seems like the stars are getting in line, and there are strong odds stacked in favour of another bull rally,” Aslam wrote.\n“In other words, we need something major changing in the current catalyst to shift the market narrative among traders that can trigger a minor pullback—let alone a serious correction,” he added.\nMarketWatch’s William Watts writes that some experts are pointing to the 2009 stock market as the closest parallel to the current setup for equities. Quoting Tony Dwyer, chief market strategist at Canaccord Genuity, Watts noted that 2021 could play out more like the postcrisis scenario seen in 2010, which would point the way to a “solid year” for the market, but with a bumpy ride thanks to “multiple first-half corrections.”\nSome of the bumpiness might emanate from the bond market, with the 10-yearTMUBMUSD10Y,1.162%and 30-year TreasurysTMUBMUSD30Y,1.950%testing recent yield highs and putting some pressure on equities.\nThe so-called reflation trade, where yields rise and investors gravitate to investments that might prosper in better economic times, has provided a number of false dawns for investors so far.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":382055429,"gmtCreate":1613315457461,"gmtModify":1704879876121,"author":{"id":"3564398446314499","authorId":"3564398446314499","name":"Gibbie","avatar":"https://static.tigerbbs.com/ac29ad2a0a11289a908ae00b770dc0c5","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Better to have correction rather than crash","listText":"Better to have correction rather than crash","text":"Better to have correction rather than crash","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/382055429","repostId":1169253231,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":3572265,"gmtCreate":1613355515894,"gmtModify":1680776948519,"authorId":3571815908504020,"author":{"id":3571815908504020,"authorId":3571815908504020,"name":"AndrewL","avatar":"https://static.tigerbbs.com/f45655eaaab14f0b61c554eea4d95ca7","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":382055429,"type":1,"supId":0,"prevId":0,"content":"Indeed","text":"Indeed","html":"Indeed"}],"langContent":"EN"},{"id":386651081,"gmtCreate":1613176433743,"gmtModify":1704879198480,"author":{"id":"3563518698255751","authorId":"3563518698255751","name":"octa8","avatar":"https://static.tigerbbs.com/a9866d6e2ee91185e34a0a44121ba0f1","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"[強]&nbsp;","listText":"[強]&nbsp;","text":"[強]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/386651081","repostId":1169253231,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":388302191,"gmtCreate":1613017554413,"gmtModify":1704877424707,"author":{"id":"3560139863772426","authorId":"3560139863772426","name":"Jon777","avatar":"https://static.tigerbbs.com/dfb83fe0ad88b21f2f1625bb19368212","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Minor correction for a bull run in the ox year ???","listText":"Minor correction for a bull run in the ox year ???","text":"Minor correction for a bull run in the ox year ???","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/388302191","repostId":1169253231,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":388971290,"gmtCreate":1613016533810,"gmtModify":1704877407211,"author":{"id":"3560138341869725","authorId":"3560138341869725","name":"jonbeloved","avatar":"https://static.tigerbbs.com/1312ffb19627a11a2ad03b49693f53dd","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":3,"crmLevelSwitch":1},"htmlText":"Stock market is like a roller coaster. Whatever goup will come down and whatever come down will go up. Just brace yourself for the ride.","listText":"Stock market is like a roller coaster. Whatever goup will come down and whatever come down will go up. Just brace yourself for the ride.","text":"Stock market is like a roller coaster. Whatever goup will come down and whatever come down will go up. Just brace yourself for the ride.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/388971290","repostId":1169253231,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":3546501,"gmtCreate":1613017567459,"gmtModify":1680776555206,"authorId":3560139863772426,"author":{"id":3560139863772426,"authorId":3560139863772426,"name":"Jon777","avatar":"https://static.tigerbbs.com/dfb83fe0ad88b21f2f1625bb19368212","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":388971290,"type":1,"supId":0,"prevId":0,"content":"???","text":"???","html":"???"}],"langContent":"EN"},{"id":388019494,"gmtCreate":1613001096318,"gmtModify":1704877196560,"author":{"id":"3560241002253187","authorId":"3560241002253187","name":"CL777","avatar":"https://static.tigerbbs.com/e9aef3dd830373a0427a3447b1b564e3","vip":1,"crmLevel":6,"crmLevelSwitch":0},"htmlText":"For US markets maybe","listText":"For US markets maybe","text":"For US markets maybe","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/388019494","repostId":1169253231,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":381435443,"gmtCreate":1612974091682,"gmtModify":1704876939003,"author":{"id":"3563944060928407","authorId":"3563944060928407","name":"Xuanziepie","avatar":"https://static.tigerbbs.com/e90f2689dccce2ab8f9fe476e1ccdf32","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Hopefully no correction","listText":"Hopefully no correction","text":"Hopefully no correction","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/381435443","repostId":1169253231,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":3569274,"gmtCreate":1613277490234,"gmtModify":1680776896455,"authorId":3570965583958757,"author":{"id":3570965583958757,"authorId":3570965583958757,"name":"SafetyFirst","avatar":"https://static.tigerbbs.com/a6356c1a4c82b1755621f3b2631a6784","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":381435443,"type":1,"supId":0,"prevId":0,"content":"<u>agree</u>","text":"<u>agree</u>","html":"<u>agree</u>"},{"id":3546506,"gmtCreate":1613017590216,"gmtModify":1680776558320,"authorId":3560139863772426,"author":{"id":3560139863772426,"authorId":3560139863772426,"name":"Jon777","avatar":"https://static.tigerbbs.com/dfb83fe0ad88b21f2f1625bb19368212","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":381435443,"type":1,"supId":0,"prevId":0,"content":"Correction is healthy For the market to go higher","text":"Correction is healthy For the market to go higher","html":"Correction is healthy For the market to go higher"}],"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":124,"commentSize":49,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1169253231"}