A lot of smart people have been calling for a market correction for an awfully long time. And all of them have been dead wrong.
Rather than make the expected sharp move lower, markets instead have inched their way to record highs. Stock gains have been unspectacular but they indeed have been steady, defying a plethora of predictions for drop of 10 percent— or worse.
“If you started from the bottom of the market in March 2009 you could have run this story every 20 percent [the market has gone] up,” said Art Hogan, chief market strategist at Wunderlich Securities. “There’s been this [sentiment that] it’s too far, too fast, the market’s gotten ahead of itself, Wall Street’s gotten ahead of Main Street, it’s just the Fed—all sorts of excuses.”
For all the reasons why the market should correct—or drop more than 10 percent, according to the traditional Wall Street definition—there are just as many reasons why it shouldn’t.
Read more at: http://www.cnbc.com/id/101715812