The Stock Market Could Be Headed For A 40% Correction
The scariest words on Wall Street these days aren’t “stock market crash” — they’re “no dry powder.” After watching cycles turn for four decades, wealth manager Ted Oakley is warning clients to brace for a “generational bear market.” His worry isn’t the drop itself, but that investors will have nothing left to buy the bargains when it hits.
- The Oxbow Advisors founder expects a 40% to 45% correction over the next 1-2 years — arguing stocks are trading ~3 standard deviations above their historical norm.
- That comes as 10-12 companies now account for half the S&P 500’s value — meaning investors buying the index aren’t nearly as diversified as they think.
Not-so-hot picks: While everyone piles into semiconductors, Oakley is quietly buying the sector nobody wants. Energy names Northern Oil & Gas and Antero Resources sit alongside Kimbell Royalty and Agnico Eagle Mines, down 45% from its 52-week high. Treasuries make up nearly 40% of the portfolio, too, offering purchasing power for whenever that “generational” correction shows up. Oakley expects oil to reclaim $100 within the next year, with gold and silver poised to follow once the momentum crowd clears out.
