Correction Risk Rising as Earnings Estimates Drop Says BPV Fund Manager

Analysts have been lowering corporate earnings estimates at a steady clip, creating an overvalued market susceptible to a correction, said George Hashbarger, portfolio manager for the BPV Wealth Preservation Fund. Hashbarger added that volatility has dropped as the Fed’s expected interest rate move has been moved further back, but it will resurface once we get closer to a Fed fund rate increase later this year. He said an overall market correction of 10% to 15% is more likely now than it has been for the past several years calling for portfolio protection like the purchase of put options.

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