What goes up must come down


Stocks have hit record highs since the election, but we may be in for a course correction. So far this year stocks have had their best six month gains since 2013.

STA Wealth Management CEO Michael Smith says it looks like we're set up for a fall.

"Normally when you have a rally that's got few names, which is called low breadth, that's very dangerous so what I think that sets up is probably some volatility in the second half of the year."

Former Texas Congressman Ron Paul says a 25% drop wouldn't surprise him, but Smith isn't quite that pessimistic.

"We have not seen a 10% correction in quite a while so it would not be abnormal to see something within that range."

The Dow gained 8% in the first six months of this year.

"I would not say for investors to just go and hit the exit button and go to cash; I would be careful, make sure you rotate, make sure you understand the quality and the sectors you're in, that is going to be the most important and understanding your overall risk is going to be even more important."

Tech stocks in particular have been volatile in recent weeks.


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