The talking heads in the mainstream media are warning that the stock market has become detached from the economy, and that a reckoning is coming. But is that real? Or is it just mainstream media hype?
Michael Smith at STA Wealth Management won't use the term reckoning. But he will use a different word to describe what other economists are saying.
"They believe a correction is going to happen. If you look at the economy, it has gotten completely disconnected from where the stock market is going," Smith said.
So is this how it plays out? And if that us the case, how bad would a correction be?
"Some sectors have become way too elevated, and we will see some pullback and volatility in those areas, but as long as we have an accommodating Federal Reserve the stock market will keep going higher," Smith explained.
Smith says the market would also like it more if President Trump won re-election in November.