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As US stocks (^DJI, ^GSPC, ^IXIC) pull back, Freedom Capital Markets chief global strategist Jay Woods tells Morning Brief co-hosts Seana Smith and Brad Smith he believes the US is in the midst of a market correction.
"I think we peaked in late December," Woods explains. "What I look at is the overall breadth of the market, and the breadth has been very negative."
The strategist elaborates on his outlook for the 2025 economy: "Equities are going to get jittery, and we're going to sell off a little bit. This is a normal correction in a secular bull market." He continues, "Nothing fundamentally has changed, but we're worried about taxes and the implications it has on inflation. We have a new administration coming in; we're not certain how that's going to play out."
Despite the uncertainty, Woods clarifies that what's happening now is not unprecedented, noting that "10% corrections happen, on average, every 18 months" and the economy is simply in the midst of that cycle.
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"I'm not looking to make headlines by saying we're in the midst of a correction," Woods says. "People see that, and they get a little spooked. I think it's a buying opportunity."
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Naomi Buchanan.