As we experience the first
real correction in years, the talk of recession has naturally reappeared along with the doom and gloomers who are convinced this is the start of a much steeper decline.
With the market still at all time highs and once
a real correction occurs, we plan on ratcheting up the Equity allocation and minimize the Bonds to 10 %.
But if the Powell regime gets «trigger happy» on interest rates, we could see
a real correction, he added.
I think using a 50 % decline is unrealistic (exception an outside geopolitical catastrophe), but I think that
a real correction (10 - 20 %), could happen any time.
Despite a point in mid-week when it looked like the dollar might finally be in for
a real correction, the dichotomy of economic performance between the US and most of the rest of the world appears to be growing once again.
Maybe if there is
a real correction there will be more companies passing that screen.
The buyer in me wish for
a real correction, instead we got a rally base on QE2 feeding more bubbles down the line.
But there's
no real correction where consumers are concerned.