“He tackled it twice -- first by pointing out that market valuations are at the higher end of historic ranges, and from that perspective a correction would not be unusual,” the Hong Kong-based investor said. “Second, after a repeat question on the topic, he stated that the Fed looks at secondary effects and the nature of corrections.”
The S&P 500 has returned about 35 percent since the Fed began its tightening cycle in December 2015.
“A 10 percent to 15 percent drop in equities is usually the difference between noise and signal,” BNP Paribas analysts led by Bricklin Dwyer wrote in a note.
This article was provided by Bloomberg News.