A growing number of investors are willing to take on risk, but many question the sustainability of the US bull market. Chris Watling, global economist and chief market strategist at Longview Economics, believes a pause is imminent. According to Watling, the US market rarely stays above 2-2.25 years without a significant break.
Watling points to weaker-than-expected economic growth as the main reason for this anticipated pause. He also notes that the bull market appears tired technically and that the US economy may struggle in the first half of the year due to reduced fiscal support, ongoing tariff debates, and sector rotations globally.
Watling’s predictions are supported by historical trends on the S&P 500, which have shown a similar pattern of weakness over the past few decades. With investors taking on more risk, a pause is not only possible but also potentially more significant than expected.
Source: https://finance.yahoo.com/video/expect-pause-us-stock-markets-190059392.html