A 10% to 15% market correction would be healthy right now, long-time bull Ed Yardeni says

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Market bull Ed Yardeni: Don’t fear a 10% to 15% correction (via TradingNation)

"It has been disconcerting to see that five stocks account for 25% of the market cap of the S&P 500," said Yardeni. "But those are the stocks that are actually getting corrected here and are leading the way on the way down."

Yardeni, who spent decades on Wall Street running investment strategy for firms including Prudential and Deutsche Bank, has been worried about a mother of all market melt-ups sparking a meltdown.that stocks were approaching frothy levels based on valuations. Now, he believes the overall market is vulnerable to a 10% to 15% sell-off. Yardeni expects it'll last days instead of weeks or months, and usher in a leadership change.paired with a potential coronavirus vaccine within months should make cyclicals more attractive.

 

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