Monday, October 13, 2014

Could see a 15 percent correction and start of bear market

The environment has turned toxic to be quite honest and has been made worse by the Ebola circumstance. I think that will turn the psychology of the average investor. Rather than becoming expensive and looking for good news, people are going to be fearful of bad news. 

And it bothers me greatly that the broader stock market indices, the Russell for example has failed to make new highs, has broken major trend lines. And I think this is more than a 3 or 5 percent correction. I think this could be a relatively 10 or 15 percent correction from the highs. Now I think the proper place to be is in cash, on the sidelines.