Market Due For A Big Pullback?
The DJIA and S&P 500 are about 10% off of their record highs. I have a hard time believing that it should be close to that high with unemployment at 8.8%. With oil at $112 I think it is inevitable that the market has a big correction in the next couple of months. Inflation due to oil prices is already cutting profit margins. GDP rose 1.8% which is anemic growth and the stock market shrugged and kept going up. I think over the next couple of months earnings growth is going to continue to be modest due to inflation and the market will eventually modify their expectations and send the market substantially lower. The only value I see is the auto companies and the banks and that is because they are unpopular at the moment. I have pulled my money out of everything else. I have started putting money into 3X Bear ETFs and I will continue to add until the market corrects.