Inevitable Correction: Weekend Reading

NEW YORK (TheStreet) -- Good Sunday afternoon, and welcome to another edition of Weekend Reading. First a look back at the week that just finished, then a look forward to the week ahead, and, lastly, a summary of articles and research papers worth reading.

The inevitable correction may have finally begun, albeit slowly. For the week, the Dow lost 0.5%, the S&P 500 0.6% and the Nasdaq 0.7%. As I've been writing here for a few weeks now, this had to happen, so now the question is how long and how far.

Looking forward to next week, it seems likely the declines will continue. Earnings season is over, so the flood of beaten estimates will end. (Reuters reports that 72% of second-quarter estimates were exceeded.) At the same time there is growing unease with the ill health of consumers, as evidenced by sentiment surveys and retail data points, more of which we will see this week. Although there are strong signs of recovery around the world, most prominently in Asia and Europe, as data showed last week, investors must never forget the role that the "wall of money" played in the recovery. Consumers remain overburdened with debt, and capacity is at unprecedented worldwide levels. There is, in short, more healing ahead.

Turning to economic indicators, next week will bring the National Association of Homebuilders August index on Monday. Also Monday we will see the New York Federal Reserve Bank's survey of manufacturing activity. Investors should also keep an eye on the the Federal Reserve Bank of Kansas City's big economics conference in Jackson Hole, Wyo., which should yield a steady stream of news.