Markets cooling off but may only be temporary

By Justin Turner CIM, DMS®, CFP®

Markets around the world have not fared well over the last week which has caused many to question whether this may be the start of something bigger.  Economic data has been less robust lately which has helped fuel speculation that a deep correction in the short term may very well be in the cards.  When I look at gold, the US dollar and even the VIX I do not see the warning signs that this could be the start of a big sell-off, at least not yet.  More likely than not it is just another healthy correction and the bull market we have been enjoying for the past several years is still alive and well.

Could we see a larger correction to the tune of 10% or even 15%?  It is certainly possible, and it would definitely be long overdue, but the more likely scenario would be a correction of another 1-3% followed by rally that sees the S&P 500 take another run at the 1900 mark before months end.  For patient investors comfortable with a bit of volatility, this correction may turn out to be a good buying opportunity.