The stock market correction is here, strategist says | Financial Post

The correction many have been waiting for appears to have arrived, according to Tony Dwyer, U.S. portfolio strategist at Canaccord Genuity.

He believes in order for this meaningful equity market pullback to last more than a day, there must be a fear of fundamental change.

And Mr. Dwyer thinks enough ammunition is being provided by weak Chinese manufacturing data, more tapering from the Federal Reserve at its meeting next week, and U.S. Treasury Secretary Jack Lew renewing debt ceiling fears.

“As we move through the correction process, it is always important to remember that corrections are considered ‘natural, normal, and healthy’ – until they actually happen. This one should prove no different,” Mr. Dwyer told clients. “Until there is real fundamental change that is driven by the Fed raising rates enough to cause a yield curve inversion, we strongly urge investors to avoid the thought that ‘the market is telling us something.’”

The strategist noted that history suggests the market is tired and overdue for a pullback in excess of 5%.

He also pointed out that when the S&P 500 peaked last week, it had risen 17.5% over 142 trading days since the last 5% pullback, representing the third longest winning streak since 2000.

Continue reading here: 

The stock market correction is here, strategist says | Financial Post

See which stocks are being affected by Social Media