EconoMeter: Will stocks 'correct' by 10% by June?
Economists, CEOs split on optimistic expectations
Roger Showley, U-T SAN DIEGO
Friday, January 10, 2014
Kelly Cunningham, National University System
It is nearly impossible to specifically predict such precise percentages and timing of the market. With the Federal Reserve signaling the start of tapering their massive bond-buying program and interest rates rising, a correction is anticipated. The effect of unwinding such a massive $4 trillion balance sheet is unknown and unprecedented. After a big run-up in stocks last year, further increases in an already aging six-year bull market are likely to be limited. New investors will be coming to the party late with price-earnings multiples where they are now. The market therefore will probably flatten and slightly decrease this year.