What Could Go Wrong? What Could Go Right?

Stocks are overextended by many different measurements, so at some point, the bears will take control. 

More than a few investors aren’t ready for that possibility.

Starting Price Matters. Making money in stocks is really quite simple. You buy a stock and then sell it at a higher price. That means two things need to happen.

The stock price rises above your purchase price. You sell while it is up there.

While we don’t know the extent, I will bet you a dollar to 47 doughnuts China has dozens of other “Evergrande lite” problems. 

I would not want to be a bank or funds holding dollar-denominated Chinese debt.

 If Evergrande depresses construction and business activity while raising the cost of capital, growth in China could slip to a very low level. 

Here in the US, COVID seems to have taken several million people out of the labor force.

Now, to the main risk.  I think the Fed has already waited too long. 

What Could Go Right? Maybe we even get an honest-to-God 10%+ correction in the markets, creating a buying opportunity as  sentiment begins to build.

John Mauldin Sept 25, 2021

https://www.mauldineconomics.com/frontlinethoughts/what-could-go-wrong1