Sunday, March 26, 2023
HomestocksMy research shows a 15% stock correction: Analyst

My research shows a 15% stock correction: Analyst

Crunching historical numbers on stocks, one strategist who spoke to CNBC on Friday warned the market could see a painful 15 percent correction.

U.S. stock futures pointed to a triple-digit drop for the Dow Jones Industrial Average at the open on this last day of trading in a January, which has been a tough month for investors. (Click here for the latest prices)

(Read more: Why this decline isn't THE correction: Stock pros)

Rick Bensignor at Wells Fargo Securities told "Squawk Box" that his research shows parallels between the market highs in December and the peak in September 1929.

Notice the similarities between the two charts.

He stressed that he's "not looking for a crash … like what ultimately took us to the 1932 bottom," but pointed out the first leg of the decline then was 15 percent.

Given market forces today, a similar 15 percent decline could happen in the near-term, he added.

By CNBC's Matthew J. Belvedere. Follow him on Twitter @Matt_SquawkCNBC.


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