A major stock selloff is unlikely in the near term despite this month's market pullback, according to Ryan Detrick, Carson Group's chief market strategist, who predicted equities will reach new highs before year end.
"You might hear some economist on TV with a bowtie telling you the end is near, but if the credit markets aren't worried, I'm not worried," he said.
Credit markets are showing little stress, which generally is a good sign for the economy and stocks, Detrick said in a column Wednesday on the firm's website.
"We think credit markets have some of the smartest investors in the room, and if they aren't worried, the weakness in the market likely won't get much worse and may offer an opportunity to add to equities," he wrote.
Detrick noted investor fear has risen with recent market weakness, which he said he had expected as a seasonal pullback.
