Via Morgan Stanley:
The Waiting Is the Hardest Part
Over the past month, several key risks to markets have surfaced, producing the first meaningful correction in this new bull market. More specifically, the S&P 500 dropped over 10% from its recent highs, led by the 14% plunge in the Nasdaq 100. Truth be told, I thought this correction would arrive in August, but instead US equity markets experienced a blow-off move to the upside as real 10- and 30-year yields made all-time lows and retail speculation became rampant. Timing is everything, as they say. Nevertheless, the correction in which we find ourselves is happening for the reasons I suspected back in August.
