Correction?

The recent market downturn is cause to wonder if we're in the early stages of a market correction. As we entered the year, investors were looking for 26% earnings growth from S&P 500 constituents while economists were looking for 3% GDP growth (consensus). Per Dave Rosenberg, at Gluskin-Sheff, 65% of the companies have reported and, ex Financials, earnings growth has been 16% while gross revenue growth has been 2%. These results should cause investors to rethink their 2010 earnings expectations and price equities accordingly.