By Jean-Philippe Bry, October 12, 2018
To quote the market’s most stable genius in chief, Donald Trump, a stock market correction was overdue. A correction was something we have been anticipating, and highlighted as recently as early October at our conference in Scottsdale, Arizona.
The premise is that as rates normalize at higher levels, volatility – long suppressed – would ultimately normalize as well. The period when both rates and stock markets would rise, encouraging increased risk taking, appears to have reached its limits – at least for now.