US stock market “due for correction”

The US stock market rose last week.

The Dow Jones Industrial Average rose 2.9 percent, its biggest gain since December 2016. The S&P 500 rose 1.5 percent.

Technology stocks did not fare as well, though. The Nasdaq Composite fell 0.6 percent.

Leuthold Group's chief investment strategist Jim Paulsen said last week: “I think we're due for a correction and we may well have that in 2018.”

However, Paulsen also said: “I'd look at what I want to buy on the cheap at that point, or I'd allocate more funds too.”

In contrast, John Hussman, president of Hussman Investment Trust, said in his December market commentary that current valuations imply “an interim market loss something on the order of -64%”, with a “likelihood of negative total returns in the S&P 500 over the coming 10-12 year period”.

“I’m not saying that Wall Street is misguided to believe that stocks are appropriately priced here,” he wrote. “I’m saying that Wall Street is spectacularly misguided in that belief.”