Tuesday, 01 June 2021 17:52

Why You Need to Worry About a Correction Right Now

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(New York)

On the surface, the last few weeks could not have gone better. Vaccinations are up, inflation worries are down, economic indicators are surging, and earnings are great. This has led to a nice relief rally after a rough later winter/early spring. However, the reality is that the summer may again be a tough time for markets. The reason why—a lot of good news is fully priced in, but bad news no longer is. Think about it: if an incredible piece of news came out today, do you think the market would react as strongly as if a very bad piece of news came out? Your gut is probably telling you the latter would have a much stronger response.


FINSUM: We have to agree that the market has gotten a lot of relief from recent news. But really, it would only take one really bad inflation report to send volatility spiking.

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