Interesting market thoughts here by Sam Stovall of S&P who notes that 2014 should be much more turbulent than 2013:
- Mid-term election years tend to have higher than normal occurrences of 5%+ declines.
- Tapering will inject uncertainty.
- At 27 months since the last correction, we’re well beyond the 18 month historical average.
- A correction will occur, but it shouldn’t turn into a bear market (20%+ decline).
- The 2nd and 3rd quarter of mid-term election years tend to be the weakest during bull markets.