WSJ: A 10% pullback in the US equities is overdue

The Wall Street Journal (WSJ) carried an article earlier on Monday, highlighting that a correction in the US equities is long due and that it would be healthy for the market.

Key Points:

Many investors and analysts fear a postelection rally that has driven the S&P 500 up roughly 10% has cleaved share prices from the underlying fundamentals that tend to drive gains over time, such as interest rates and corporate earnings

What's due now, some investors say, is a correction: a 10% pullback from the indexes' March 1 highs

They contend such a retreat would tamp down speculation, deflate pockets of froth in popular investments and provide buying opportunities for those still on the sidelines

Such declines serve an important function in a healthy market cycle

What goes up often comes down