Plenty Of Warning Signs A 5-7% Correction May Happen Soon | Lance Roberts

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**Lance Roberts** (0:59)
I think there's enough warning signs right now as we get through July, get into August and September, that seeing a 3 to 5 to 6 percent pullback is certainly there.

**Adam Taggart** (1:15)
Welcome to Thoughtful Money, I'm Thoughtful Money Founder and your host, Adam Taggart, welcoming you back at the end of the week for another weekly market recap, featuring my good friend, the melodious portfolio manager, Lance Roberts. Lance, how you doing?

**Lance Roberts** (1:28)
I'm just fine, but I'm not doing any melodies today.

**Adam Taggart** (1:35)
Well, it's gonna apply to the rant that we have at the end of today's discussion. We're gonna talk about songs. I will out you, though, as a not bad guitar player. And maybe one of these days, Lance, we'll have an intro, we'll have a little Thoughtful Money intro with you picking on your guitar here.

**Lance Roberts** (1:53)
You know, actually, I've been toying around with that for a while because Brent Clanton, who produces my radio show every day, he plays bass, drums. So we've got all the makings for a whole RIA band kind of in play. So, yeah, and one of the problems we have with our radio show is that our YouTube, and you know this as well with Google, is you can't use any copyrighted music because Google will shut you off. So we may have to start writing our own intro music.

**Adam Taggart** (2:21)
Well, you could write your own oars where you get to in the rants. It's getting easier and easier to create really decent music that you own the rights to. But we'll leave that as a teaser. I guess one thing I'll say, Lance, is if your RIA band needs somebody to play the cowbell, you just give me a shout.

**Lance Roberts** (2:37)
Always need more cowbell.

**Adam Taggart** (2:39)
Exactly. Bruce Dickinson always needs more cowbell. All right. Well, look, let's jump right in to it, Lance. Markets back at all time highs, baby, pretty much.

**Lance Roberts** (2:49)
Well, what were yesterday?

**Adam Taggart** (2:51)
Yeah.
When I wrote this last night, we were at all time highs. We're down a smidge so far this morning. Obviously, still could close green. We'll see. So I want to get to the TA, but before I do, I want to read something that you just wrote, Lance. Okay. This is a couple of sentences, so bear with me, folks. Earning season continues to roll, and the window for the buyback window won't be open until the end of the month. Starting today, markets tend to enter a seasonally weaker period of the year, as investors process earnings and volatility begins to take higher. Market action has already been slack over the past couple of weeks, and it's highly deviated from moving averages. A reversal back to the 200 daily moving average would be about a 6% decline, a move that would be well within historical norms. Of concern now is the high level of retail investor speculation, making up about 14% of trading volume that's more than was seen during the meme media of 2021 It was only 12% back then. Such spikes in speculation typically occurs at a market peak and is a setup for a market correction. We cannot stress enough the importance of taking opportunity to rebalance risk and take profits now. A 6% correction ain't nothing. All right. So the market has got its party hat on. Lance Roberts, who tells us, look, don't get shaken out. Don't let bearish headlines make you run for the hills, but is really starting to say now, hey, you've been saying for the past couple of weeks, really good time to lock in gains. But it sounds to me like you're saying, hey, look, this is getting really stretched now, folks.