The bearish chorus is growing day by day. And I’m ignoring the perma-bears like Albert Edwards (Societe General), James Montier (GMO) and David Rosenberg (Gluskin Sheff), et al.
I’ve already mentioned a few times that Lowry Researrch is expecting a 10% correction. This has been the case since the start of the year. While the oldest technical research firm on Wall Street has serious concerns in the short term, they are unmoved in the conviction that the cyclical bull market is going to be over any time soon.
Tom DeMark is expecting a “significant market top” any day now with an ensuing correction of 11%. This is based on the DeMark Sequential and Combo indicators which predict inflection points in the market. DeMark said in a recent phone interview: “I’m pretty confident that in one to two weeks, the market will be in a descent. It could be pretty sharp.” For more see this article from Bloomberg.
Bob Janjuah was talking this morning with Bloomberg TV about why he’s “tactically bearish” with expectations for a 10% correction:
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You can also watch the Bloomberg clip here.
Janjuah’s major concerns are that the “risk on” trade riding the reflation wave from the Fed is now over and it is time to go “risk off”. His three major concerns are a (hard) slow down in Asia, a festering European crisis that has yet to be addressed fully and the question of the US economic recovery. He is also expecting a correction of appx. 10% for US markets.