Tuesday, February 5, 2013

Expect a short term correction

Bob Janjuah expects a correction that could take the S&P500 down by 5 percent or so (from 1,515 to 1,440ish) over the first few weeks of February. But by the end of February and into March, the rally will resume.

"Tactically, over the next quarter or two, I expect to see one or two (at least) 5 percent to 10 percent dips or corrections ((there are after all many banana skins ahead in terms of politics, policy, and economic fundamentals), but which I think will be short lived,"

In a note to clients, Janjuah warns however that investors must not ignore the"flashing warning signs".