What people don't realise atm is the major reason for the correction..simply put
Wall St is extremely overvalued..
As I said over and over again..all the market needs is a catalyst to bust the Bull Cycle..The catalyst could be as miniscule as airflow from butterfly wings (The Butterfly Effect).
If Trump wins
and the Sharemarket tanks, the media will make Trump a major causative issue when in reality Trump was just the "butterfly" in the wrong place at the wrong time.
My assumption is that if Clinton wins, a short term relief rally "may?" occur with Wall St however the real problem (overvalued) doesn't go away and the overvalued market awaits for another catalyst to present itself..in other words, the Trump worry will immediately be replaced with another worry and there's plenty of worries out there..
A 135yr chart below simply emphasises how overvalued Wall St really is..
PE10 (Shiller) value around 25 is considered an area where most cyclic reversals are likely to occur...only three times in the last 135years did the price go above 25 without an immediate cyclic reversal and all 3 of those times resulted in a very destructive outcomes.
http://bonnerandpartners.com/wp-cont...CAPE-Ratio.png
Edit: without earnings growth imagine what a PE10 value of 5 would look like in say 5 years time ..An S&P500 dropping from 2100 to 430..
Impossible you ask..Well, its the same as saying that PE25+ today was impossible...both have previously occurred 3 times in the last 135 years,,,