Personally, Ive always felt that stock markets corrections are like sudden death: you know it’s coming, just not the timing or the form it will take.<\/p>\n
What will the next stock market correction look like ?<\/p>\n
Wider Credit Spreads would help – high yield spreads are near 2007 tights.<\/p>\n
Higher interest rates would help – even with the Fed pushing short rates higher, the yield curve needs to steepen.<\/p>\n
The largest corrections are usually from some outside force, some “exogenous shock” and those are the hardest to predict. It could be anything from North Korea to potential impeachment action, to a disruption in Europe like Greece or Catalonia.<\/p>\n
Who knows ? And more importantly does it really matter ?<\/p>\n
Bespoke (as always) had some interesting stats this week and last week:\u00a0<\/strong><\/em><\/p>\n Source: Bespoke Report 10\/6\/17<\/p>\n\n