Tags: Markman | stocks | correction | streak

Jon Markman: Stocks Can Go 5 More Years Without 10 Percent Correction

By    |   Friday, 25 October 2013 10:40 AM

While the Standard & Poor's 500 Index has now gone 515 trading days without a 10 percent correction, dating back to Oct. 3, 2011, that doesn't mean such a pullback is now imminent, says Jon Markman, founder of Markman Capital Insight, an investment research service.

"There has been a lot of concern that stocks have gone too far lately without a 10 percent correction," he writes on Yahoo.

"The fear is that, if the market goes on too long without losing at least a tenth of its value off a high, any pullbacks to come in the future will be a lot more dramatic."

Editor’s Note:
5 Reasons Stocks Will Collapse . . .

But research by Bespoke Investment Group shows that while the current 515-day streak is well above average, there have been two periods over the last 25 years that lasted more than twice as long, Markman says.

To match the 1990-97 record, the current streak would have to last until Oct. 1, 2018.

For now, Markman sees positive signs for stocks. "As long as a low-growth environment also features low inflation and an accommodative monetary policy, the price/earnings multiples of successful companies can rise a lot higher than most people think."

Much of the market's current focus centers on third-quarter earnings. "We are right at the heart of earnings season so everything at this point of time is very earnings driven," Mark Spellman, a portfolio manager at Value Line Funds, told Bloomberg.

"Earnings have been as good if not slightly better than expected. We've done a lot on the cost side. What people want to see is continued progress in the sales line."

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

Related Stories:

Hedge Fund Manager Spitznagel: Stocks May Plunge 40 Percent

Greenspan: Stocks Are 'Relatively Low' and Heading Upward

© 2021 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
InvestingAnalysis
While the Standard & Poor's 500 Index has now gone 515 trading days without a 10 percent correction, dating back to Oct. 3, 2011, that doesn't mean such a pullback is now imminent, says Jon Markman, founder of Markman Capital Insight, an investment research service.
Markman,stocks,correction,streak
307
2013-40-25
Friday, 25 October 2013 10:40 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved