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Market bull Jim Paulsen of the investment management firm Leuthold Group has predicted a 10% to 15% market correction due to high valuations and federal policies becoming less accommodating. In addition, smaller companies are bearing the brunt of the recent market swings.
Given this scenario, we think it might be best to avoid the recent IPOs of companies with weak fundamentals, such as DiDi Global Inc. (DIDI), Toast, Inc. (TOST), Full Truck Alliance Co. Ltd. (YMM), and Marqeta, Inc. (MQ). These stocks have plunged more than 40% in price since listing. Furthermore, DIDI plans to withdraw from the New York Stock Exchange due to Chinese regulatory pressure.
