Beware of the Soon-to-Fade ‘Wealth Effect’

“I’m actually pretty negative for the first time in a while. It may only last a year or so, but it’s definitely a period where I think the best gains have been had and wouldn’t surprise me to see a significant correction.”

— Steve Cohen, Point72 Asset Management founder, Friday, February 21^st.

Finally, beyond Warren Buffett, we have someone else with heft who seems to have a modicum of judgment and rationality. The thing is, bear markets last a year — not significant corrections which tend to last weeks or months.