Jeff Newgard, president and CEO of Idaho Falls-based Bank of Idaho, said he's heard a lot of talk lately about a market correction
. Though advises other lenders and borrowers to follow "good fundamentals" and to learn from the Great Recession.
Historically, the PSE index has been able to rise stronger, achieving new record highs every time a major market correction
Overstretched valuations, tighter monetary policies, geopolitical risks, a slowdown and high debt levels in China and low inflation, are some of the factors that could potentially trigger a market correction
. However, all of these warnings are being ignored, and stocks continue to score new highs.
While many financial analysts warn of a possible market correction
in the near future, few investors report hearing "a lot" about it in the news.
In some advanced economies, including Australia, Canada, Sweden and the United Kingdom, house prices are elevated relative to rents, raising financial stability risks if rising interest rates were to trigger a housing market correction
The survey, conducted with more than 200 business executives to analyse Dubai's booming residential property market and the possibility of another real estate 'bubble,' revealed that 84 per cent of respondents did not believe Dubai property prices would plunge in the same way they did in the 2008-9 market correction
These funds should be used to cover living expenses during the next market correction
. Having this emergency financial storage will prevent you from having to take withdrawals in a down market and allow your portfolio time to recover.
However, the initial response of the Securities and Commodities Authority (SCA) to the market correction
has pleased few of the current players.
Although a market correction
has been ruled out in the short term by S&P Rating Services, the rating agency cited three factors that could cause the UAE real estate sector to slide back into a correction.
"There have been rumblings about a market correction
since I started in 1989.
In a release detailing the latest index results, Geoff Dietrich, vice president of Dietrich & Associates, stated that the market correction
was anticipated and was facilitated by Federal Reserve Chairman Ben Bernanke's update on the economy, mainly his indication that the Fed's quantitative easing program may taper off in the near future.