AdvertisementThe stock market is in for a correction, as a trio of unfavorable factors will weigh on equity prices, according to Sam Stovall, chief investment strategist of CFRA Research.
Tech stocks, which have dominated the market in recent years, are trading at a 68% premium.
Stocks could see their first "crack in the ice" in the tech sector, he added, pointing to lofty valuations among mega-cap tech stocks.
AdvertisementOther forecasters have warned of limited upside to the market as stocks — particularly tech stocks — continue to climb higher.
According to one valuation metric, the stock market looks to be the most overvalued since 1929, which could pave the way to a steep correction, elite investor John Hussman warned.
Persons:
Sam Stovall, —, Stovall, Stocks, John Hussman
Organizations:
Service, CFRA Research, Wall, Treasury, Tech, CNBC