Investors are struggling to determine if stocks are heading for a big correction and the bearish case certainly got a boost on Monday from comments made by a widely followed economist on CNBC.
During an interview on Squawk Box Europe Nouriel Roubini, also dubbed "Dr. Doom, said "I see the risk of a double-dip, W-shaped recession… towards the end of next year."
Rubini singles out high prices at the pump and inflation as having the potential to be very serious drags on the economy. In addition, Rubini also feels that the next earnings season could be very, very disappointing with companies unable to support their current valuations.
As a result he says, “I believe there's going to be a significant market correction for equities."
Of course Roubini’s forecasts can be a little gloomy but he’s not alone in his call for a correction.
If you watch the show regularly you know that Fast Money trader Guy Adami has been pounding the desk for days about signals he considers bearish. "The path of least resistance appears to be lower," he says over and over.
And even OptionMonster Jon Najarian – who tends to be something of an optimist – suggests preparing for a correction, though Najarian expects the slide to be mild.
If stocks are heading for a correction, which names should you get on your radar right now?
Tim Seymour: I think Potash [POT 92.08 4.81 (+5.51%) ] and Intrepid Potash [IPI 26.29 1.65 (+6.7%) ] are both within 5% of being terribly attractive.
Guy Adami: If JPMorgan [JPM 33.57 0.70 (+2.13%) ] gets down to $28 I think it’s interesting.
Karen Finerman: I’m a buyer of Transocean [RIG 72.98 0.62 (+0.86%) ] down 5%.
Joe Terranova: I like Goldman [GS 141.19 4.18 (+3.05%) ] and Freeport McMoRan [FCX 47.18 2.00 (+4.43%) ] .
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