Strategist Who Foresaw Retail Stock Boom Sees Big Test Ahead

  • BTIG’s Julian Emanuel sees risk of 10% to 20% drop in S&P 500
  • Stock market newcomers are more accustomed to record rally

Pedestrians walk along Wall Street in New York.

Photographer: Michael Nagle/Bloomberg
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The strategist who predicted retail investors would flock to the U.S. stock market now argues that they are going to face a major test of their staying power from a further pullback in equities.

Corrections of 10% to 20% are common in bull markets and one may well be underway, BTIG LLC Chief Equity and Derivatives Strategist Julian Emanuel wrote in an email after the S&P 500 Index slid 1.7% on Monday.