Real Investment Advice’s Lance Roberts explains in a Monday morning market update that the stock market could see additional upside but warns a correction could be nearing.
Roberts tells investors stocks could be setting up for another push higher as momentum and margin debt increases as this may generate the classic “rug-pull” scenario, resulting in a 10-20% correction.
He said Georgia Senate runoffs and a potential reversal in the dollar could spark market volatility.
Technically speaking, Roberts said the market is highly overextended, and a potential quick selloff is nearing.
For more commentary on the overvalued stock market and a compelling argument that a correction is ahead, read “Overconfidence Meets Impatience To Set Up The Crash Of 2021.”