A resource for debunking the investments myths peddled by the financial press and Wall Street hype and presenting rational,sensible investing approaches based on sound research and academic findings.
This blog is maintained by Lawrence Weinman MBA an independent Registered Investment Advisor www.lweinmanadvisor1.com
"It comes as little surprise to Wall Street veterans that the selloff began just after leading strategists at the major investment banks had upgraded their year-end stock market forecasts yet again.
In September, 15 top strategists had raised their year-end target for the S&P 500 to an average of 2010. At the end of last year, they were forecasting 1934. But in just over a month since the upgrades, the S&P has instead tumbled from 2000 to 1887."
The author offers this "insight" for investors
If this is merely a regular correction in the course of a regular economic expansion, the answer may be: Not much further.
Corrections of 5% to 20% are a normal part of the stock market. ...
But it is plausible that this correction might be the start of something much worse.
But the aurthor does make not of the most accurate stock market forecast of all time:
Legendary Wall Street mogul J.P. Morgan once asked for a stock-market forecast, confidently predicted that share prices would fluctuate. And he’s been right ever since