Brace yourself for some pain, John Doe investor.
Amid Blackstone Group (BX) Vice Chairman Byron Wien's 2018 prediction of a 10% pullback in the S&P 500, TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer questions whether investors are ready for such a correction.
"I think that Byron is great enough that you have to put it into your thinking because when you dismiss Byron, you dismiss history," Cramer warned.
Even with a correction, Wien expects the S&P 500 to finish the year above 3,000. The S&P 500 closed above 2,700 on Wednesday for the first time. The S&P 500 rose 19% in 2017.
"The [predictions that Wien] gets wrong don't cost you anything - the ones he gets right make you a fortune," Cramer said.
It's hard to argue with the call.
At 381 trading days and counting, the stock market is now at its third-longest streak without a 5% pullback since 1930, according to a new note released by Goldman Sachs. As TheStreet's Executive Editor Brian Sozzi points out, a 5% pullback from the S&P 500's recent high of 2,690 hit on Dec. 18 would require a 135-point drop to 2,555.
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