[Shannon Zimmerman writes] In stock market parlance, a "correction" is usually taken to mean a downward swing of 10% or more. As I type, the S&P is off roughly 2.4% from the high it touched earlier this month, which means we still have a way to go before hitting correction territory. Nonetheless, last week's swoon has me wondering if the folks at the Leuthold fund shop are onto something.
As reported in this earlier commentary, Leuthold's merry band of data mavens thinks there's a possibility that "a significant economic slowdown, or possibly a recession, could become increasingly obvious by the second half of 2006."
As the management team put it in a recent letter to investors, "We believe it is a time to be conservative ... not aggressive."