The market is fighting hard to shrug off a carousel of concerns ranging from an expiring debt ceiling to potential contagion from a bust of overly-indebted China real estate development Evergrande.
But any rally off the recent lows may prove short-lived, contends Binky Chadha, Deutsche Bank chief markets strategist. The veteran strategist reiterated his call for a deep stock market correction on Thursday.
“I would say this [week’s] sell-off was very much a garden variety pullback rather than the kind of pullback that we have been — and we continue to — basically look for,” Chadha said on Yahoo Finance Live.
The Dow Jones Industrial Average tanked more than 600 points on Monday as investors were hit with news of a potential debt default by Evergrande. Significant selling pressure was also seen on the S&P 500 and Nasdaq Composite, while the VIX volatility index spiked to levels not touched since May.
Stocks, however, have gone…