A 10% to 15% correction in the markets would be healthy.
That’s according to long-time bull Ed Yardeni, President of Yardeni Research, as noted by CNBC.
“The market has had a huge move since March 23. The Nasdaq is up something like 70%. That’s a melt-up. It’s not as big as what we had in 1999 when we had over 200%. But I wouldn’t want to see a repeat of that. So, I’m actually somewhat comforted by the market taking a break here,” he told CNBC.
Allianz’s Mohamed El-Erian also just told CNBC, “We could have another 10% fall, easily.”
“El-Erian said the market, though, remains decoupled from not only the U.S. economy, but the VIX, treasury and high-yield markets at current levels. With the tech-heavy Nasdaq up double digits and the benchmark index up nearly 7%, the market was ripe for a pullback after five straight months of gains and the strongest August in decades,” added CNBC.