Now wall street doesn't actual issue a correction but I think it is time for the small bubble to burst. The Fed needs to raise interest rates and a lot of stocks are currently still overvalued despite higher quarter two earnings. A small correction now would be better earnings in the long run
Yes, i think it is time for Wall Street to issue another correction. Someone needs to do something to give the economy a jumpstart. Things have been looking bleak for a while and although it seems to be picking up someone, progress is very slow. Something needs to be done to speed up the process.
Wall Street is showing some nice gains as of late; however, many feel that this is another bubble that will have strong negative implications when it finally pops. Heading up this bubble is the current real estate market. The economy is not fully recovered, unemployment is still quite high and the foreclosure market will likely see another surge as employment prospects are still not where they should be. This will have a ripple effect through Wall Street if they do not make the necessary corrections.
A correction is not a decree, it is an event. It's like the weatherman issuing a storm. It doesn't work that way. A correction is when people involved in the market sell off because they realize what they have is overvalued, and they want to sell before the price drops too low. It's a race, so no one issues anything. They try to do it before other people catch one. There is no Board of Wall Street that says "OK gents, time for a depression! All in favor, say aye! All opposed? The Ayes have it! Now let's be poor for a while!"
The stock market is driven the demand for securities. So in order for a correction to occur people need to stop purchasing stocks resulting in a drop of the price of the securities. The vast majority of stocks are owned by mutual funds and pension funds both who have money they must invest for their member's benefit.