April 8, 2010

Standard & Poor's Expects a 10 Percent Correction In Stocks

Standard & Poor's has raised the price target for its benchmark index even though the firm thinks stocks are overdue for a 10 percent drop.

Bull market runs such as the current one off the March 2009 lows almost always come with a 10 percent correction along the way. But so far the S&P has only seen a series of five mini-corrections of 5 percent to 8 percent drops even as the index has gained 75 percent.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

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