I think we’re going to have a 10% drop this week in U.S.. Major correction.
I think we are already down 10% for the year. Another 10% is possible as there is blood in the water and the sharks are feasting.
“I think we’re going to have a 10% drop this week in U.S.. Major correction”
We are due for a correction, we have had a long run up, and the S&P 500 is selling around 19 times earnings, vs. the long term average of around 16 or 17. If there is a significant drop in earnings on the horizon, prices should drop even some more (in theory), and there is usually a bit of overshooting before prices settle at fair valuation. Even so we are not in bubble-bursting territory for stocks.
China is.
The US markets may even benefit from money fleeing from worse situations overseas.
The only money running toward Chinese markets is from the Chinese Government, and they are running out of kitchen sinks to throw at their problem. If their stock prices settle on fair valuation, figuring in their widespread fraud, it would be an epic bust.