Is This Still ‘Just’ A Correction, Or Is It The Start Of Something Much Worse?
https://seekingalpha.com/article/4153142-still-just-correction-start-something-much-worse
Despite the worsening macro image, tarnished by Fed-induced tightening, higher rates, rising inflation, and the prospect of increased trade tariffs, the broader economy appears to still be largely insulated from these threats.
Moreover, GOP tax cuts, increased infrastructure spending, record corporate profits, GDP expansion, robust but still relatively stable inflation, positive sentiment, and increased overall economic activity should continue to serve as a catalyst to propel stocks higher in the short to intermediate term. Therefore, these fundamental elements coupled with a relatively constructive technical setup suggest that this correction is likely nearing an end, rather than transitioning into a bear market.
Longer term, the inflationary pressures coupled with rising rates, and other constricting elements are likely to cause a significant slowdown in the U.S. economy, which will likely lead to a recession coupled with a severe bear market. However, I do not expect this scenario to materialize until 2019/2020.
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