Time to correction
U.S. Stocks Shot up Nearly 30% in 5 Months. Is It Time to Worry About a Correction?
Stocks are on a steady path higher since the October lows, despite interest rates near a quarter-century high and inflation above target. Investors no longer seem worried about the Federal Reserve keeping interest rates "higher for longer," despite a strong run up in equities and other risky assets since autumn.The major U.S. stock indexes posted their biggest weekly gains in months on Friday, days after Fed Chairman Powell kept three rate cuts on the table for this year, but spelled out a cautious path out of restrictive monetary policy territory.Big equity gauges recently booked record new highs, while the S&P 500 index SPX now sits about 27% above its Oct. 27 low, according to FactSet data."It's been a lot," said Iman Brivanlou, head of income equities at TCW, a Los Angeles-headquartered investment firm, about the rapid rise in stocks.The drop comes despite the potential for higher oil prices, greater commercial real estate RWR fallout than anticipated, a looming default cycle in l
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