[ad_1]
Inventory may be on the verge of another correction.
"It's really the direction of economic growth, it's accelerating and decelerating, it's repeating itself in cycles," he said, noting that during a slowdown, "the risk of A correction of 10 to 20% increases considerably ".
Achuthan used the same chart last year to help him build his correction forecast. His indicators began to show signs of a growing economic slowdown at the end of 2017. A few months later, he officially became cautious.
"We were very lonely last year saying," Hey, there will be a slowdown, "he said." They bring with them a lot of risk of stock market correction. "
Last summer, on "Trading Nation," Achuthan warned investors that a correction of 10 to 20% would likely affect stocks. December 24, the Dow and the S & P 500 were trading 20% of their all-time highs.
Inventories have returned considerably since then. Until January, the Dow and S & P 500 rose more than 6%. However, Achuthan maintains that nothing has changed fundamentally since the downward trend of last year.
"We are still in this slowdown, there is more to come, it is not over," he said. "This is not a clear signal until these leading indicators come back."
But that's not all bad news.
He does not expect the economic downturn to turn into a recession. According to Achuthan, growth may pick up speed in the next two quarters, especially if international markets show signs of recovery.
"The United States exists within the global economy and we are plugged in. It's important to us," said Achuthan. "Maybe it's there that we have to see the floor first."
Source link
