BMO Strategist Who Called Stock Rally Is Bracing for Correction
- ‘The market needs a breather’ in near term, Brian Belski says
- S&P 500 heads toward best week of 2024 on renewed Fed optimism
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One of few Wall Street forecasters who correctly predicted last year’s stock market rally finds himself in a contrarian position once again. But this time Brian Belski thinks equities are set up for a substantial plunge — just as many of his peers are turning bullish.
A correction is imminent after stocks have run up too far, too fast on false optimism over how soon the Federal Reserve will dial back interest rates, the BMO Capital Markets chief investment strategist and long-time bull said in an interview. It could come any time, from the next consumer inflation reading to seasonal selling in May, according to Belski. The culprit will be a realization among investors that higher rates are here to stay.