Quote:
Originally Posted by FurnaceFace
My guy told me a couple of days ago to expect a 10% correction before the end of the year. They aren't expecting it'll be long but it'll freak out some investors.
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I don't want to take a shot at this guy, but the truth is they have no idea, because no one knows. Maybe they're right, but it's basically impossible to predict these shorter term moves with any certainty. I'm not even convinced that you (or I) could get the daily direction of the markets right if we gave it a shot at 7:25am each morning.
It's really not an attack on anyone, as it's the world we live in. Everyday the pundits tell us what happened and a reason why, but that's also a guess. Why did company ABC decline $25 this week when they have zero connection to China, won't be impacted by tariffs and there is no news? Well apparently it's that they anticipate rate increases, only those increases started months ago! It makes people feel better when they hear these things. The truth is we have these 10% pullbacks in the market more years than we don't, but that's about all we know. We don't know when with any reasonable foresight and don't know why (otherwise you would avoid them!). And while they take place more often than not, they don't always happen.