Market Veteran Predicts Possible 10% Correction in US Stock Market, Despite Strong Economy”.

Despite the continued strength of the US economy, market veteran Ed Yardeni predicts a potential 10% correction in the stock market. This comes after strong March retail sales and an updated first-quarter GDP growth estimate of 2.8%.

Yardeni cautions that rising bond yields and declining stock prices, with the S&P 500 falling below its 50-day moving average, indicate a possible correction. The market may be moving towards being oversold after reaching overbought levels last month.

Despite these concerns, Yardeni believes that real disposable income is on the rise, leading to increased consumer spending and overall economic growth. Consumers are still spending due to rising disposable income, a comfortable retirement for many Americans, and an influx of immigrants contributing to the economy.

Overall, while there may be some volatility in the stock market, Yardeni suggests that the US economy continues to show strength and resilience.