Market's are cyclical. This is a given. But that said.....Nope. Won't happen. Why? Because everyone is WATCHING FOR IT! ;-) It's also true that never does a correction, or a market launch, occur when everyone is watching and waiting for it. If this were not true then all those folks, those self-annointed pundits of the "know" and market analytical types would have seen the 2008 debacle a'comin' from a far. Their record in calling these things is abysmal. So...you're gonna trust their chicken-little analysis of the situation now? Or are you gonna trust the evidence of your own eyes? Heh!
(I jest...but not by much. Bottom line in this game is one should always be playing it with one eye on exit door, with an exit strategy all planned out and ready should the need arise.)
Yes there will be a major correction this Summer or early Fall. It will come like a tornado when you least expect it and anyone that thinks MU can't get hammered because of it's a 10X EPS or whatever is badly mistaken. I've been in stocks that had a lower multiple than that during a major correction and they got killed like everything else. There's no logic in a mudslide, everything gets hammered!
The reason why every stock is equally susceptible during a market crash is due to the psychology of the moment. When people are stampeding for the doors they're not interested in whether the stock they want to sell has a 5, 10, 15 or 20 multiple, they just want out (at any price). The only thing they're thinking about is survival. I've heard these arguments about great stocks falling less during a crash for 50 years now and it's all bull. Crash selling has to do the fear level of the sellers at the time and nothing to do with the earnings multiple of the stock being sold. MU will tank like every other stock if the market crashes.
You are correct. No major correction until until EVERYBODY starts buying...then, watch out. MU will still do okay because it's still trading at under 10xPE and will go down less than others like SNDK that are trading at high PE multiples. My advice, stick with MU for at least 2 more years an you'll do well.
Sentiment: Strong Buy